Oil price soars amid Libyan bloodshed.

Yet another good reason to end the dependency on oil, and move to cleaner and renewable energy sources.

spud


http://www.abc.net.au/news/stories/2011/02/22/3145098.htm



Oil price soars amid Libyan bloodshed

Posted 45 minutes ago

Global oil prices are soaring because of the unrest in key oil-producing states in the Middle East and North Africa.

Libya alone produces around 2 per cent of the world's supply and 1.6 million barrels a day will be at risk if a tribal leader follows through on a threat to cut exports to the West.

The leader of the Al-Zuwayya tribe in eastern Libya, Shaikh Faraj al Zuway, told Al Jazeera yesterday oil supplies would be cut if the situation did not improve.

"We will stop oil exports to Western countries within 24 hours" if the violence did not stop, he said.

As a result, London's benchmark Brent Crude has risen to a two-and-a-half -year high of $US105.2 a barrel.

Oil analyst John Hall told Radio National the price is being driven by fear rather than a shortage of supply.

"Egypt has calmed down, Bahrain looks a little bit calmer at the moment and if Colonel Gaddafi has actually left Libya that could be a very, very good sign," he said.

"But again there is a lot of uncertainty. There is also uncertainty about Iran and one or two other countries, so the fear factor is building up." Tweet