Oil up slightly after the beginning of the attacks against Libya

Oil prices rose slightly yesterday, after the US, Great Britain and France launched airstrikes against Libya, in an attempt to stop the advance of the troops of Muammar Gaddafi towards Benghazi, a city controlled by rebels.

The air attacks were launched on Saturday afternoon, based on the resolution 1973 of the UN Security Council, which approves a military intervention in Libya.

The price of crude with April delivery was up 1.09 dollars (1.1%) at 10:55, on the New York Mercantile Exchange, reaching 102.16 dollars/ barrel. Earlier during the electronic trading session, the price had risen to 103.35 dollars/barrel.

On March 7th, on the American market, the price reached the highest level since 2008: 106.95 dollars/barrel, due to tensions in Libya.

On the ICE Futures Exchange of London, the price of Brent crude with April delivery rose 1.14 dollars (1%) yesterday, to 115.07 dollars barrel. Previously, price had reached 116.22 dollars/barrel.

Analysts of investment banks "JP Morgan Chase & Co.", "Bank of America Merrill Lynch" and "Barclays" Plc consider that Libya"s oil production will remain halted for the entire year 2011.

If the country"s oil exports will remain virtually non-existent for the next six months, then oil prices will continue to rise.

It is worth mentioning that in the long term, the control that Gaddafi has over Libya"s oil infrastructure could lead to a renegotiation of the contracts with foreign companies, in favor of the countries that did not participate in the attacks. China, India, Russia, Brazil and Germany abstained from the vote by which the UN authorized the launch of the strikes in Libya.

The situation of Libya also caused the price of gold to rise yesterday. At 10:55, on Comex New York, the price of gold with April delivery rose 14 dollars (1%), to 1,430.10 dollars an ounce. In London, the price of gold with spot delivery rose 0.9%, to 1,431.28 dollars/ounce.