Commodity Daily News

Crude Oil at $103.75 as Bombs Descend on Libyan Targets

The price for a barrel of Light, Sweet Crude soared over the past several trading days, climbing above $103.75 in this morning's early trading session. After approving limited action to quell Muammar Qaddafi's assault on the Libyan rebels in Benghazi, the UN airstrikes have had the effect of pushing oil prices higher through an anticipated disruption in supply.

Market analysts are now expecting the UN joint naval and aerial operations to provoke a longer-term decline in oil production from the region as the Libyan supplies are removed from the market share over the coming weeks, with the possibility of an even longer period if tensions are not resolved soon. So long as the battle against Qaddafi continues, and as recovery efforts in Japan get underway, traders should expect a persistent uptrend in oil prices as speculators buy into the notion of a decline on the supply side.