rediff.com

NewsApp (Free)

Read news as it happens
Download NewsApp

Available on  

Rediff News  All News 
Rediff.com  » Business » Libya crisis wreaks havoc on oil prices

Libya crisis wreaks havoc on oil prices

Last updated on: February 25, 2011 08:58 IST

Libya crisis wreaks havoc on oil prices

     Next

Next

Oil prices hit two-and-a-half-year highs in Asian trade on Thursday as violence continued to wrack the Middle East and threatened to spread to other bigger oil producers in the region, but on Friday crude prices dipped a bit as fears over supply eased with oil cartel OPEC promising to boost output to make up for any production loss in revolt-hit Libya, analysts said.

Continuing political turmoil in Libya and the Middle East has led to investor worries over global economic recovery in view of rising crude oil prices, sending stock markets on a steep slide.

Click NEXT to read on . . . 


Image: A combination picture shows price boards at various petrol stations in Dortmund, February 24, 2011.
Photographs: Reuters
     Next

Libya crisis wreaks havoc on oil prices

Prev     Next
Prev

Next

Brent North Sea crude oil hit 29-month high yesterday to nearly $120 a barrel, and the light sweet crude for April deliveries to above $100 mark in New York. India imports nearly 70 per cent of its oil requirements.

Emerging-market currencies were mostly weaker as Libya's crisis and rising oil prices spread some risk aversion through markets, though emerging-market debt firmed slightly versus United States Treasury.

Click NEXT to read on . . . 


Image: A driver of a diesel tanker walks outside an oil depot in New Delhi.
Photographs: Reuters
Prev     Next

Libya crisis wreaks havoc on oil prices

Prev     Next
Prev

Next

Market sentiment appears to be extremely fragile amid concerns that the simmering political tensions in the Middle-East and North African would lift crude oil prices further. Any spike in oil prices is bad for the Indian economy as it will adversely affect the already high current account gap.

ONGS,OIL evacuating staff from Libya

State-owned Oil and Natural Gas Corp and Oil India are moving staff out of Libya, fearing more violence in the North African nation that is facing a rebellion.

Click NEXT to read on . . . 


Image: Traders work in the oil options pit on the floor of the New York Mercantile Exchange in New York City. World stocks fell as a growing revolt in Libya drove oil prices to 30-month highs.
Photographs: Reuters
Prev     Next

Libya crisis wreaks havoc on oil prices

Prev     Next
Prev

Next

ONGC has one staffer while OIL had two in the Libyan capital Tripoli and the two state firms are making arrangements to evacuate them by month-end.

"Contact with the officer has been intermittent," ONGC chairman and managing director A K Hazarika said, "We are working with Union external affairs ministry and the Indian Embassy in Libya to bring him back."

Click NEXT to read on . . . 


Image: A gas pump is hung at a gas station in Seoul.
Photographs: Reuters
Prev     Next

Libya crisis wreaks havoc on oil prices

Prev     Next
Prev

Next

OIL has been able to deliver air-tickets to its officers of two flights out of Tripoli.

"Communication through telephone and internet is very difficult. But we have been able to speak to them and have managed to send tickets across for a couple of flights out of Tripoli on Friday and the day-after," OIL chairman and managing director N M Borah said.

Click NEXT to read on . . . 


Image: Gas prices are seen posted at a petrol station in New York.
Photographs: Reuters
Prev     Next

Libya crisis wreaks havoc on oil prices

Prev     Next
Prev

Next

Both the firms have authorised their staffers to leave Libya by whatever mean possible.

"We have (asked)our officer to be in touch with Indian Embassy in Libya," ONGC Videsh Ltd managing director R S Butola said.

Click NEXT to read on . . . 


Image: A worker is seen on a boat as it approaches an oil rig.
Photographs: Reuters
Prev     Next

Libya crisis wreaks havoc on oil prices

Prev     Next
Prev

Next

OVL, the overseas arm of the state explorer, had three blocks in Libya - Block NC-189 in Sirte Basin, Block 81-1 in Ghadames Basin in south-west Libya and Contract Area 43 located in Cyrenaica offshore basin in the Mediterranean sea.

The company had surrendered Block NC-198 and Block 81-1 after it did not discover any hydrocarbon and was working only on Contract Area 43.

Click NEXT to read on . . . 


Image: Raul Martinez pumps gas into his employer's truck at Fleet Fueling in Burbank, California.
Photographs: Reuters
Prev     Next

Libya crisis wreaks havoc on oil prices

Prev     Next
Prev

Next

OIL is the operator of two exploration blocks in scrub desert area of Western Libya. The blocks, where Indian Oil Corp was an equal partner, had turned out to be dry and OIL had decided to relinquish them.

"We were in the process of winding up operations (when the unrest broke out in Libya)," Borah said.

Click NEXT to read on . . . 


Image: Traders work in the oil options pit on the floor of the New York Mercantile Exchange in New York City.
Photographs: Reuters
Prev     Next

Libya crisis wreaks havoc on oil prices

Prev     Next
Prev

Next

OIL had, some weeks back, applied to Libyan authorities for relinquishing the two onshore blocks - Block 86 and Block 102(4) in oil-prolific Sirte Basin.

OIL was the operator of the two blocks and held 50 per cent stake in the venture, while the rest was held by state refiner IOC.

Click NEXT to read on . . . 


Image: Eric Eastman fixes the wheel on his bicycle next to a board displaying gas prices at a petrol station in Los Angeles.
Photographs: Reuters
Prev     Next

Libya crisis wreaks havoc on oil prices

Prev     Next
Prev

Next

OIL-IOC had won the blocks in the Libyan Exploration and Production Service Agreement (EPSA IV) Bid Round I in 2004.

The official said OIL also has interest in Area 95/96 (Block 2/1, 2 & 4) with Algerian oil firm Sonatrach. OIL and IOC hold 25 per cent stake each, while Sonatrach is the operator with 50 per cent.

Click NEXT to read on . . . 


Image: Traders work in the oil options pit on the floor of the New York Mercantile Exchange in New York City.
Photographs: Reuters
Prev     Next

Libya crisis wreaks havoc on oil prices

Prev     Next
Prev

Next

The onshore block, located in the oil-prolific Ghadames Basin, was won in EPSA Bid Round IV in 2007.

Meanwhile, reports said that several thousand Indians are to be evacuated by air and the sea from Libya given "sharp and unprecedented deterioration" in the situation in the North African country witnessing anti-government protests that have claimed over 300 lives so far.

Click NEXT to read on . . . 


Image: Traders work on the floor of the New York Stock Exchange.
Photographs: Reuters
Prev     Next

Libya crisis wreaks havoc on oil prices

Prev     More
Prev

More

The Indian government on Thursday decided to immediately commence evacuation of Indians and has sent a ship from Egypt to Benghazi to ferry about 1,200 people, starting with those with medical emergency, women and children.

It is also expecting landing permission for its aircraft soon and therefore, has kept aircraft on stand by.


Image: A traders watches his screen on the floor of the New York Stock Exchange.
Photographs: Reuters
Prev     More
© Copyright 2014 PTI. All rights reserved. Republication or redistribution of PTI content, including by framing or similar means, is expressly prohibited without the prior written consent.