Oil prices jump $2 after US leads air strikes on Libya

Oil prices have climbed after the US led a series of air strikes against Libya.

Brent crude rose as much as $2.26 to $116.19 a barrel, while US light crude rose as much as $2.12 to $103.19.

Analysts said there are concerns about crude supply disruption. Libya is the world’s twelfth-largest oil producer.

Crude prices have been volatile in recent weeks as markets have dealt with a number of issues including the Japan earthquake.

“I can see uncertainty and fear driving the price of oil higher in the short term,” said Matthew Lewis of CMC Markets.

“At this stage, it looks like Libya has further to play. Gaddafi still seems very defiant.

“We’ll see further spikes and shocks in the oil market this week.”

Analysts said that as well as the military action in Libya, there are also concerns about the spread of unrest across the Middle East.

* BBC News

* Image from Google

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