Oil prices drop on reports of Gaddafi's death
Oil prices dropped this afternoon after it was reported that former ruler of Libya Muammar Gaddafi had died from wounds suffered during his capture in the town of Sirte. The news gave investors hope that oil exports from Libya will resume sooner than expected.
Hostilities in Libya kicked off in February and developed into a civil war, forcing international oil companies to cease operations in the country, while exports was halted.
Prior to the inception of the war, Libya exported 1.7 million barrels of high quality crude per day.
Commodities faced more pressure from waning optimism that EU policymakers will reach an agreement on a plan to tackle the European debt crisis. Hopes that Germany and France have already agreed to boost Europe's bailout fund to €2 trillion were dashed by yesterday's comments from Nicolas Sarkozy.
The French president indicat6ed that the euro zone's two largest economic were still at odds over how to increase the size of the fund.
However, losses in futures for crude oil were minimal thanks to signs that energy demand in the US is on the rise. Official inventories data from the US government revealed yesterday that crude oil stockpile sin the US shed a massive 4.7 million barrels.
US light, sweet crude for December delivery, currently the most actively traded contract on the New York Mercantile Exchange (NYMEX), fell 53 cents to US$85.76/barrel in morning trade in New York.
December Brent crude dropped 78 cents to US$109.24/barrel on the ICE Exchange this afternoon.
Today's top risers in the oil and gas sector were:
Woburn Energy (LON:WBN), up 51 percent at 1.48 pence at midday
Enegi Oil (LON:ENEG), up 13 percent at 9.62 pence
Ascent Resources (LON:AST), up 13 percent at 3.75 pence
Regal Petroleum (LON:RPT), up 12 percent at 35.16 pence
Cove Energy (LON:COV), up 7 percent at 86.75 pence
The top fallers were:
Matra Petroleum (LON:MTA), down 8.5 percent at 0.871 pence at midday
Xtract Energy (LON:XTR), down 7.5 percent at 1.74 pence
Sefton Resources (LON:SER), down 6.5 percent at 2.63 pence
Frontera Resources (LON:FRR), down 5.5 percent at 1.62 pence
Global Petroleum (LON:GBP), down 5 percent at 13.56 pence
Related news
- London Mining remains on track to hit 2012 production target at Marampa
- Ceres Power Holdings reports significant improvements of its fuel cell products
- Oxford Catalysts Group shares advance as it announces first start-up of FT reactor
- Mariana Resources kicks off drilling programme at Las Calandrias gold-silver project
- Orogen Gold begins Phase 1 drilling programme at Deli Jovan
- Magnolia Petroleum on track to hit 100 wells target by end-2012
- Mwana Africa sells 15pct stake in Freda Rebecca gold mine for $405k - UPDATE
