Oil prices in Asia soar at 105 USD with continued hostility in Libya

NEW DELHI: The continued hostility between rebels and forces loyal to Muammar Qadhafi in Libya has affected the oil prices in Asia adversely. The oil prices have soared to around 105 USD.

Libya, which has been crippled by a rebellion, houses largest oil reserves in Africa. Though officials assert that oil fields continue to operate, however daily export of 1.5 million barrels was stopped for some time. The New York Mercantile Exchange witnessed benchmark crude for April delivery, down with 68 cents to reach 104.75 USD a barrel in the electronic trading.

While Obama government in order to slow the rising price of oil is discussing to tap U.S. strategic oil reserves, the OPEC has geared up the production to make up the losses of Libyan crude. To keep rebels at bay from the Qadhafi’s stronghold Tripoli, Libyan warplanes intensified their air strikes on rebel positions around the Ras Lanouf oil port.