WTI oil price ends week at $101 on Middle East & Libya

19 March 2011 19 March 2011

BonTrade

WTI oil futures end Friday’s trading session around $101 a barrel, while the ongoing unrest in the Middle East and Libya pushes crude oil prices higher and investors attention remains fixed on these events that are driving short term oil price direction.

WTI Oil Futures – Closing Price

US Light crude oil futures for April 2011 delivery ended the week’s trading session at $101.54 a barrel on the NYMEX, $0.88 a barrel higher than last week’s closing price of $100.66.

Libya Situation May Get Worse

WTI oil prices fell back in late trading on Friday after Libyan forces called a ceasefire, but reports of renewed fighting on the ground and the mobilisation of Western forces raised doubts that the conflict will end anytime soon.

“Oil companies are not expected to rush back to Libya, as the situation is likely to get worse before it gets better.” said energy analyst Fadel Gheit at Oppenheimer.

In volatile trading, NYMEX April crude oil futures rose more than two percent to hit the day’s high overnight, later falling more than one percent after Libya’s truce declaration, announced on Friday afternoon.

Oil prices also ended well above the day’s low as unrest in Bahrain and Yemen festered and analysts said more tensions were likely to spread across the Middle East and North Africa, keeping the market worried about oil supply stability.

WTI Oil Price Firm Over $100

Despite ending lower Friday, WTI oil prices have rallied sharply from levels below $100 a barrel earlier this week as tensions in the Middle East played a factor in driving WTI crude oil back over the $100 mark.