Monday, 21 Feb 2011

Crude Oil Surges to $95.45 a Barrel as Violence in Libya Escalates

Crude oil prices saw another rally during Monday's trading session. Crude began this week's session near $90 a barrel and surged rapidly throughout today's session, reaching as high as $95.45 a barrel, its highest level in more than two years.

Crude oil prices gained today in light of the antigovernment protests in the Middle East and Africa. The unrest in Libya intensified today as security forces have launched attacks on protesters, killing more than 200 people, according to the New York Human Rights Watch.

Libya produces about 1.5 million barrels of crude oil on a daily basis, and there are now concrete concerns that crude supply from the African nation will be disrupted.

Gold prices were also largely affected by the ongoing unrest in the region, and an ounce of gold has reached today as high as $1,407, crossing the $1,400 level for the first time in seven weeks.

Looking ahead to tomorrow, traders are advised to continue to follow the updates from Libya. In case that the antigovernment protests will continue to escalate, crude oil and gold prices might see another bullish session.