The global turmoil has pushed the prices of oil down but for a short time. The dearth in the supply of oil due to rebel uprise in Libya has resurfaced the percolating concern of high commodity prices in the global market.
As per the market analysts, the Brent crude hit a two-and-a half –year high of $121 a barrel on Monday shaking the belief of easy relief from high oil prices of many countries.
Moreover, the US crude oil tumbled to $108.11 a barrel after settling at $108.47 on Monday. The market analysts claimed that high of oil prices in the last trading day helped long term investors of commodity market to book high profits amid the volatility in global market.
The recent spurt in the activity in the global market asserts that demand of oil is more in Europe as compared to other regions. In addition to the halt in the production of oil in war-stricken Libya, a labor strike in Gabon on Monday curtailed the oil supply by another 240,000 barrels per day (bpd).
Deciphering the sensitivity of the issue, Tony Nunan, a Risk Manager with Tokyo-based Mitsubishi Corp, claimed that world is facing one of the worst oil shortage crises. Moreover, U. S. Federal Reserve Chairman, Ben Bernanke has expressed concern over the potential impact of high prices of oil on the micro-economic parameters of the US.
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