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Libyan Unrest Boosts Crude Oil & Gold

February 25, 2011 at 1:15 by Vladimir Vyun

Gold gained and crude oil reversed losses on the concerns about the uprising in Libya. The Libyan unrest caused the oil supply from the country to decline by two-thirds. The uprisings in Egypt and Tunisia toppled the governments. The shift of power inspired the demonstrations in Bahrain and Yemen.

Libya supplies 1.6 million barrels of oil per day (about 1.8 percent of world supply). Barclays Plc reported that about 1 million barrels of Libya’s daily oil production has been stopped. Goldman Sachs Group Inc. put estimates of disruptions around 500,000 barrels per day.

April futures for gold delivery gained $1.80 to $1,415.80 per ounce as of 13:30 on COMEX after reaching earlier $1,418.80, the highest price since January 3. The gains were limited as the traders used the high prices to take some profit by selling the metal. Crude oil advanced $0.38 (0.4 percent) to $97.66 per barrel in electronic trading on NYMEX after it earlier dropped 0.7 percent.

If you have any questions and comments on the commodities today, use the form below to reply.

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