Gasoline, Heating Oil Futures Gain on Airstrikes Against Libya

[Purveyor]

By Barbara Powell -

Gasoline and heating oil gained as airstrikes against Libyan military targets boosted crude oil prices and increased concerns about supply disruptions.

Futures advanced after the U.S., U.K. and French officials said missile and aircraft strikes have grounded Muammar Qaddafi’s air force and coalition members debated how far they can take military action against his regime. Futures also gained as government forces killed protesters in Syria and Yemen, indicating regional unrest is spreading.

“The market is reacting to the upside on oil on the concerns in the Middle East,” said Phil Flynn, vice president of research at PFGBest in Chicago. Libya is the headline everyone is talking about, but it’s also Syria and Yemen that keep the risks high.”

--CLIP
Libyan oil production halted by the country’s civil war is likely to remain suspended the rest of 2011, according to JPMorgan Chase & Co., Bank of America Merrill Lynch and Barclays Plc. Oil supplies from Africa’s third-largest producer collapsed from 1.6 million barrels a day in January to a “trickle” as of last week and may be halted for months because of international sanctions, the International Energy Agency estimates.

MORE...

http://www.bloomberg.com/news/2011-03-21/gasoline-heating-oil-futures-gain-on-air-strikes-against-libya.html

[The_Casual_Observer]

1. Who would have guessed?