Oil Oil up up in the way

 

 

 

 

 

Oil above $111 as attacks damage Libyan oil fields

(AP) – 5 days ago

SINGAPORE (AP) — Oil prices jumped above $111 a barrel Friday in Asia as fighting in Libya damaged crude installations in the OPEC nation and a weaker dollar makes commodities cheaper for investors with other currencies.
Benchmark crude for May delivery was up 88 cents at $111.18 a barrel at midday Singapore time, the highest since September 2008, in electronic trading on the New York Mercantile Exchange. The contract rose $1.47 to settle at $110.30 on Thursday.
In London, Brent crude for May delivery was up 63 cents to $123.30 a barrel on the ICE Futures exchange.
Crude output in Libya slowed to a trickle this week as forces loyal to Moammar Gadhafi attacked the country's largest oil field in the rebel-controlled east, rebels said. Most of Libya's 1.6 million barrels a day of crude production had already been shut down by nearly two months of fighting.
Rebels were able to sell a shipment of 1 million barrels Wednesday but damage to their oil fields has all but halted production. Output in the government-held west has collapsed as sanctions target Libyan state oil activities.
"Traders have been worried that a dragged-out civil war might ultimately damage or destroy Libyan oil installations," Cameron Hanover said in a report.
A weaker dollar also boosted oil prices since that makes dollar-based commodities such as crude cheaper for trader with other currencies. The euro rose to $1.4390 on Friday from $1.4316 late Thursday.
In other Nymex trading in May contracts, heating oil rose 1.6 cents to $3.22 a gallon and gasoline gained 2 cents to $3.21 a gallon. Natural gas futures were up 0.5 cents at $4.06 per 1,000 cubic feet.

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My Reaction:
                       Oil in day to day living is very important to every person since a lot of people use vehicles and the energy they use to make it start is oil. Libya is one of those countries that exports oil and trade them. Libya is currently on war because of Gadhafi's violence. He even destroyed large companies of oil producers and it had a large impact to the economy. We the importers are very dependent with that product and we are of great need of it. Since there is war on Libya it is difficult for them to normally export oil product to other countries. That made the oil increase gradually because of the ongoing war. War will be a indicator that all money and resources are needed for the success of the operation. It means that this supplies will be given to the soldiers for remedy and will suffice there needs.
                     
                      With the oil affected by the war, the prices of this oils also increases. It affected all the consumers of oil and the people of the county. Let us take for example the Philippines particularly Davao. Since oil increase in prices the transportation payments also increase. The taxi before starts with 30 pesos then it increase into 40 pesos with the oil prices increase. The 7 pesos payment for jeep, now it is 8 pesos. The people will adapt to this system temporarily.