New York crude oil soars 8.5 per cent on Libya crisis

February 23, 2011 | 08:05

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New York crude prices soared more than eight percent Tuesday amid rising violence in Libya, the first major Arab oil exporter to be rocked by political turmoil sweeping the Middle East.

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New York's WTI light sweet crude for March delivery closed at $93.57 a barrel, a gain of $7.37, or 8.5 per cent, from Friday's close.

There was no settlement Monday on the New York Mercantile Exchange due to the Presidents Day public holiday.

The price spike came after Libyan leader Moamer Kadhafi on Tuesday ordered his forces to crush an uprising that has rocked his 41-year rule, warning armed protesters that they will be executed.

Denying widespread reports that army, police and militias had killed unarmed demonstrators indiscriminately in the past week, Kadhafi said "we have not yet used force."

However, he said, "if the situation worsens we will use it in line with international law and Libya's constitution."

Libya is Africa's fourth-largest crude producer after Nigeria, Algeria and Angola, with production of 1.8 million barrels per day.

AFP

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