Oil at $99 a Barrel on Libyan Supply Cuts

27 February 2011 (Last Updated February 27th, 2011 18:30)

Oil rose to just over $99 a barrel today as concerns continue about supply falls after Libya reduced its exports. US crude rose by $1.45 to stand at $99.33 a barrel, while Brent crude increased $1.79 to $113.92 a barrel by 12.35 ET, reports Reuters. Protests in Libya have redu

Oil rose to just over $99 a barrel today as concerns continue about supply falls after Libya reduced its exports.

US crude rose by $1.45 to stand at $99.33 a barrel, while Brent crude increased $1.79 to $113.92 a barrel by 12.35 ET, reports Reuters.

Protests in Libya have reduced the country’s production to three-quarters of its total output and investors are worried about the impact of the protests on output from Saudi Arabia.

The new 2011 oil price forecast takes into account a range of scenarios that may affect the oil market over the next 12 months. These vary from the rapid normalisation of geopolitical risk to the loss of output in a major oil producer, according to a JP Morgan report.

After last week’s price highs, the International Energy Agency urged OPEC to use its excess oil production capacity if required.

The IEA also indicated that it would release emergency stocks whenever necessary.