Oil prices hit by the events in Libya

Crude oil fell by more than a dollar to $107 a barrel, while the main indices of stock exchanges in Europe became green. This was the reaction of the world markets to the news that the Libyan rebels had captured almost the entire capital Tripoli on Sunday night. The residence of leader Muammar Gaddafi was set on fire.

According to the investors, the end of the civil war, which lasted nearly 6 months, will lead to resuming of the oil supplies from Libya, which is an OPEC member. The country used to export some 1.6 million barrels of oil per day, but after the outbreak of the conflict almost all exports were stopped. However, analysts remain sceptical of how quickly oil production in Libya would recover, but the experts of the Italian ENI are already in the country and explore possibilities for putting the refineries back into operation.

When the fights started in Libya, oil was traded at $84 per barrel, then its price surged to over $93 per barrel and continued to increase, exceeding $110 per barrel at the end of April, while Brent hit a two-year high of $127 per barrel. Black gold prices have been decreasing in recent weeks due to the signals of a global slowdown in economic growth. Meanwhile, the European indices remained positive, thus confirming the approval of the overthrow of Gaddafi's regime on the part of the countries from the Old Continent. In London, FTSE 100 fetched 2% and the French CAC 40 registered the same increase. Germany’s DAX rose by 1% and Wall Street also opened with a sharp jump.

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