oil

Oil prices gained today due to worries arising from a possible supply disruptions in the Middle East and Africa.

Brent crude rose by 31 cents to $103.31 a barrel, while US crude gained by 18 cents to $98.15 per barrel, reported Reuters.

Oil production in Libya has dropped by a third after protesters closed down several oil fields, raising worries over oil supply from the Middle East.

Anti-government demonstrations in Egypt also increased apprehensions about the stability of the entire region.

However, increasing oil and gas output from shale rocks in the US has lowered the country’s demand for imported crude, forcing sellers to go else where.

Production at Britain’s Buzzard oil field in the North Sea post-upgrade reached up to the normal rate of 200,000 barrels per day (bpd) on Monday.

Canada resumed operations at part of a major pipeline in Alberta following improvements in weather conditions.

Demand for crude is expected to increase in the US as BP commenced a new crude distillation unit at its 413,000 bpd refinery in Whiting, Indiana.


Image: Oil prices gained support due to supply worries after protesters shut oil fields in Libya. Photo courtesy of freedigitalphotos.

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