Oil futures have climbed to two-month highs while anti-government protestors and forces loyal to Libya's ruler have clashed during the past month, and analysts expect the prices to continue rising as fighting intensifies, Bloomberg reports.
As international forces fire on Libyan forces to protect civilians in the oil-rich nation, another factor likely to impact prices of the commodity is the integrity and safety of machinery and equipment that helps extract it from the earth.
"The biggest risk for oil companies involves possible damage to their facilities which would make it harder to bring production back up once the conflict ends," Alessandro Marrone, a defense analyst at the IAI Institute of International Affairs in Rome, told Bloomberg. "Some facilities could be part of collateral damage from raids, others could be sabotaged as retaliation."
Just after 8 a.m. on Monday, Brent crude oil futures were up 1.77 percent, a $2.02 rise to $115.95 per barrel.
"Oil could go up tomorrow – there's more uncertainty," John Sfakianakis of Banque Saudi Fransi told the news service on Saturday. "Oil markets have already priced in the Libya uncertainty over the past three weeks, and they’ve also priced in the oil that has been taken off the market. So if there is a spike, it will be more speculative than real."
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