Brent oil trading firm over $115, Libya rebels say no talks

4 March 2011 4 March 2011

BonTrade

Brent crude oil futures open Friday’s trading session firm over $115 a barrel and oil prices are expected to remain bullish as the latest news from Libya’s opposition Council said there was no room for talks and Gaddafi must go.

Latest Brent Oil Price

In London, Brent crude oil futures for April 2011 delivery was trading at $115.54 a barrel, 07.00 GMT this morning on the ICE Futures Exchange.

Libya Oil Supply – Figures

Libya has the capacity to produce 1.6 million barrels of oil per day, and estimates of the amount of oil production that has been “shut in”, due to Libya’s recent unrest varies between 400,000 and 1.2 millions per day.

Libya produces a very light sweet oil, which is easy to refine. Replacing lost oil production from Libya is not as easy as many believe. Simply having spare capacity to produce more crude oil around OPEC does not mean that OPEC can compensate for the loss of Libyan crude oil to refiners.

No Talks – It’s Too Late

“We have a very clear statement. It’s too late. Too much blood has been spilt. Moamar Kadhafi has lost legitimacy to lead and he must leave.” said Mustafa Gheriani, a spokesman for the Libyan opposition’s self declared National Council in Benghazi.

Brent oil prices will continue to be pushed higher as Middle Eastern unrest has investors and traders concerned about crude oil supply to European countries. Some analysts are now forecasting that Brent could easily reach $150 a barrel this year. Brent oil prices have risen over $23 since January 1st 2011.