Oil costs have risen in the United Kingdom and United States after unrelenting unrest in Libya and uncertainties about the effect on the nation’s crude exports. In London Brent crude increased by more than $2 a barrel to $108.5, just before falling back to $106.42 a barrel.
In New York, United States light sweet crude oil increased by $5.44 to $91.64 a barrel. United States shares were also behind, European shares fell prior to recuperating by mid-afternoon and Asian stock markets had closed down.
Not long after the start, the NASDAQ was behind by 1.1 percent, S&P 500 by 0.60 percent and the Dow by 0.36 percent. France’s Cac 40 chop down 0.57 percent; however German Dax and the London FTSE had returned to positive territory.
In the interim, Spanish oil company Repsol-YFP asserted it had stopped production in Libya. On Tue., the Standard & Poor’s (S&P) credit rating agency relegated Libya from A- to BBB+, and said it can lower the rating further.
“We expect that the violent eruptions of communal turbulence seen in eastern area of Libya, and especially in the city Benghazi,” S&P said.
Source: Business Today