Business News

OPEC oil rises despite Libyan rebels' gains

Aug 23, 2011, 9:58 GMT

Vienna - The oil price of the Organization of the Petroleum Exporting Countries (OPEC) inched up to 103.84 dollars at the start of the week, the group said Tuesday.

OPEC's basket price rose 0.48 dollars per barrel (159 litres) on Monday despite developments in Libya on the weekend, when rebels entered Tripoli, increasing hopes on markets that the country has come a step closer to resuming its oil supply to the world.

Analysts said that oil market participants quickly realized that there were several risks that may delay a quick resumption of oil production and export by the North African OPEC member.

'We remain in the dark about the extent of damage and looting at installations,' consultants at JBC Energy wrote in Vienna, adding that international oil corporations have yet to decide on when to send their staff back into Libya.

As oil production has come almost to a halt in past months, prices have risen.

A defeat of Libyan leader Moamer Gaddafi might actually be bad news for oil prices, analyst Jason Schenker at Texas-based Prestige Economics said: 'After all, the success of the Libyan rebels could inspire other groups in oil producing countries, which could result in increasing strife and physical crude oil disruption - or the prospect thereof.'

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