Oil prices settled above $102 per barrel on Tuesday for the first time since September of 2008 as fighting escalated in Libya and petroleum demand grew in the U.S.
Libyan oil fields produce 1.6 million barrels of oil per day, which is less than 2 percent of global demand, but experts say the disruption is putting pressure on world supplies at a time when demand is rising.
The North African dictatorship has been embroiled in an uprising that has shut down oil production in many parts of the country. Forces loyal to Libyan leader Moammar Gadhafi used airstrikes recently in a battle against protesters for control of a key oil installation in the eastern half of the country.
Since the uprising began in mid-February, oil prices have soared nearly $17 per barrel, and retail gasoline and diesel prices in the U.S. have increased more than 25 cents a gallon. According to one estimate, American motorists are now paying $94.9 million more per day to operate their cars.
Uncertainty of Supply
While no one is yet talking about fears of a global shortage of oil, analysts say unrest in the region is causing difficulty in gaining accurate estimates of the scope of the supply disruption.
The Associated Press reports a Libyan oil minister said the production in the east had declined 50 percent, though international observers say the drop is higher. The International Energy Agency said Wednesday that between 850,000 and 1 million barrels per day were shut in. Its previous estimate was between 500,000 and 750,000 barrels per day.
Trade sources said four tankers with at least 2.4 million barrels of crude oil have sailed from Libya in the past 24 hours despite mounting violence.
Governments in Yemen, Oman, Iran and Iraq have clashed with protesters seeking reforms as popular unrest has spread in the region holding more than 60 percent of the world’s oil reserve.
Meanwhile, the Energy Information Administration reported that oil supplies in the U.S. fell by 400,000 barrels. Supplies dropped as refineries flushed out winter fuel blends in preparation for new formulas required during the summer. Despite the drop, the U.S. is still sitting on a relatively large surplus in both crude and gasoline and distillates compared with previous years.
The national average diesel price reported today by Pro-Miles.com is $3.768.
Printer Friendly Version
Email This Story
RSS
Fuel and Oil: Related News
3/3/2011 – Oil Rises Above $102 as Libyan Supply Fears Escalate
Oil prices settled above $102 per barrel on Tuesday for the first time since September of 2008 as fighting escalated in Libya and petroleum demand grew in the U.S….
More
3/1/2011 – Diesel Spikes 14 Cents, Passes $3.71 a Gallon
Diesel fuel took its biggest hike since June 2009 this week, rising 14.3 cents over last week’s Department of Energy price survey. The national average price reported by the Energy Information Administration on Monday was $3.716 per gallon….
More
2/28/2011 – ATA: It’s Time to Open Access to Domestic Energy Sources
With world events showing the importance of energy independence, the American Trucking Associations called on the Obama administration to stop blocking access to U.S.-held energy assets….
More
2/25/2011 – Oil Prices Appear to be Stabilizing, Diesel Up: Crude Closes at $97.28
Oil prices dropped Thursday for the first time in nine days after the International Energy Agency said the rebellion in Libya may have cut oil production less than originally feared…
More
2/24/2011 – Oil Prices Top $100, Settle at $98.10 on Wednesday
The price of oil topped the $100 mark in mid-day trading on Wednesday as supply concerns worsened with the advancing strife in Libya….
More
2/23/2011 – Diesel Prices Surge as Oil Nears $100
The price of a gallon of diesel fuel is up by 3.9 cents this week, topping $3.57 a gallon, and marking its 12th consecutive weekly increase….
More
2/22/2011 – Crude Prices Soar as Supply Concerns Rise
U.S. Energy markets had the day off Monday but overseas activity proved just about enough for everyone….
More
2/15/2011 – Diesel Still Climbing as Oil Declines
Diesel prices around the nation gained another 2.1 cents this week, marking the 11th straight increase in a row according to the Department of Energy’s pricing survey….
More
2/9/2011 – DOE Projects Diesel to Average $3.43 This Year
The Department of Energy’s monthly fuel price projections continue to rise in lockstep with the price of crude oil and diesel fuel. The monthly projection for February, up 3 cents from the January forecast, sees diesel fuel averaging $3.43 for 2011 and $3.51 for 2012….
More
2/8/2011 – Diesel Hits $3.51 in Tenth Straight Weekly Increase
Diesel prices continued their upward trend this week, rising an alarming 7.5 cents to hit a new post-2008 high of $3.513….
More
2/1/2011 – Diesel Prices Rise for Ninth Week
The national average price of a gallon of diesel rose by just under a penny to $3.438 per gallon, according to weekly figures from the U.S. Department of Energy….
More
1/25/2011 – Fuel Prices Up Again This Week
Diesel prices rose again this week for the eighth week in a row, to a national average of $3.43 per gallon, according to weekly figures from the U.S. Department of Energy. That’s the highest level since Oct. 27, 2008….
More