Sunday, 20 March 2011

Oil prices look set to trade higher after Libya bombings

Oil prices are set to jump in early trading tomorrow after Saturday’s bombings in Libya will have investors on edge about unrest in the region and how the situation in Libya could affect western oil supplies.

Libya Bombings – Operation Odyssey Dawn

British and American warships unleashed cruise missiles against Libya last night as the world finally turned on Colonel Gaddafi. Last night, the US Pentagon reported that 112 Tomahawk missiles had been fired from both US and British ships and submarines in Operation Odyssey Dawn.

Oil Prices to Rocket Higher

Oil prices jumped two percent in trading on Friday after a UN Security Council resolution imposed a no-fly zone over Libya, however prices fell back in the afternoon as it seemed that Libya would adhere to the call.

The resolution initially pushed both Brent and WTI oil contracts higher after it was passed and traders are expecting oil futures to remain bullish next week after operation Odyssey Dawn unfolds.

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