The price of oil dropped to $97 a barrel today, as Saudi Arabia said that it would offset low supplies in Libya.

US crude increased by 44¢ to stand at $97.72 after surging as high as $103.41 on Thursday, while Brent crude for April rose by $1.31 to $112.67 a barrel by 12.23 ET, reports Reuters.

According to International Energy Agency estimates, Libya’s daily oil output may have fallen by 500,000 barrels to 750,000bpd, while Italian oil company Eni estimated a shortage of 1.2 million barrels because of the country’s unrest.

At present, key Libyan oil terminals are under the control of rebels.

Saudi Arabia tried to calm fears of an oil supply crisis, saying that it is willing to meet the shortfall.