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Oil climbs on Libya fighting

Oil&Gas Materials 7 March 2011 18:03 (UTC +04:00)
Oil rose to a 29-month high as fighting in Libya intensified, Bloomberg reported
Oil climbs on Libya fighting

Azerbaijan, Baku, March. 7 / Trend /

Oil rose to a 29-month high as fighting in Libya intensified, Bloomberg reported.

Oil advanced 2.3 percent to $106.84 a barrel at 7:55 a.m. in New York.

Fighting increased between Libyan rebels and troops loyal to Muammar Qaddafi, reducing the nation's crude-oil output by as much as 1 million barrels a day, according to the International Energy Agency.

"A swift return to normality is unlikely" a team of analysts led by Eugen Weinberg, the Frankfurt-based head of commodities research at Commerzbank AG, wrote in a report. "It is essentially the fear of the unrest spreading across the entire region which is pushing oil prices up."

Commerzbank forecast today that West Texas Intermediate oil will average $107 in the second quarter.

Brent crude gained 1.9 percent to $118.14 on London's ICE Futures Europe exchange. Gasoline rose 1.3 percent to $3.0845 a gallon.

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