Because of the turbulence in Libyan oil price was the highest since September 26, 2008.up U.S $ 1.2 to U.S $ 105 per barrel.
This isbecause Libya is the major crude oil producers in the world.
Since february 15 last upheaval occurred in Libya, thus making the country`s oil exports halted. Oil prices will continue to move higheruntil the situation can be controlled.
According to the IEA, OPEC`s production quota has been targeting its members- including Libya- by 4.7 million barrels per day. However, when supplies from Libyacontinues stalled, OPEC output quota will be reduced 32 percent to about 3.2 million per day.
After popular movements overturned the rulers of Tunisia and Egypt, its immediate neighbours to the westand east, Libya experienced a full-scale revolt beginning in February 2011. By 20 February, the unrest had spread to Tripoli. In the early hours of 21 February 2011, Saif al-Islam MuammarAl-Gaddafi, oldest son of Muammar Gaddafi, spoke on Libyan television of his fears that the country would fragment and be replaced by "15 Islamic fundamentalist emirates" if the uprising engulfed theentire state. He warned that the country's economic wealth and recent prosperity was at risk, admitted that "mistakes had been made" in quelling recent protests and announced that a constitutionalconvention would begin on 23 February. Shortly after this speech, the Libyan Ambassador to India announced on BBC Radio 5 live that he had resigned in protest at the "massacre" of protesters.
Gaddafiappeared on Libyan state TV to deny rumors of his runaway voiced by the United Kingdom's foreign minister, William Hague, saying, "I want to show that I'm in Tripoli and not in Venezuela. Do not believe the(TV) channels belonging to stray dogs." His government has also portrayed the recent rebellion as being engineered by Western elements and Israel, and has been suspected of manipulating the...