Brent oil price ends week at $119, Libya ceasefire rejected

2 April 2011 2 April 2011

BonTrade

Brent oil prices end the week’s trading session at new 2011 highs after Libya’s government rejected a conditional ceasefire offer made by the rebel administration, pushing both Brent and WTI oil futures higher late on Friday.

Brent Oil Futures – Closing Price

Brent crude oil futures for May 2011 delivery ended the week’s trading session at $118.93 a barrel on the ICE Futures Exchange yesterday evening, $2.98 higher than last week’s closing price of $115.95 a barrel.

Libya Ceasfire Rejected

A Libyan rebel leader said his forces are ready for a ceasefire, provided Moammar Gadhafi’s forces end their assaults on rebel held cities, but there wasn’t any immediate sign that would take place.

However, Libyan government spokesman Moussa Ibrahim said that troops loyal to Col Muammar Gaddafi would never withdraw from the rebel held cities they were besieging.

Libyan Rebel Oil Deal with Qatar

Rebels said they had reached a deal in which Qatar will market crude from rebel held areas, in exchange for food, medicine, and funds to buy weapons. Oil exports of just a million barrels per week could come from the Sarir oil field once vessels are available to transport it, the rebels said.

The agreement for Qatar to market oil from territory held by the rebels covers crude oil from Libya’s southeast, and excludes the areas of Brega and Ras Lanuf. It is still not clear when the oil sales would begin.

Prior to Libya’s unrest which began in February, the country was pumping about 2 percent of global oil supplies, and exporting 1.6 million barrels a day. In is not clear when oil exports from the country will resume, however many believe that Libya oil exports could be offline indefinitely.