Oil prices drop on reports of Gaddafi's death
(they even stole my pic!)
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, which forced international oil companies to withdraw from the country, while production 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.
Oil prices drop on reports of Gaddafi's death - Proactiveinvestors (UK) (external - login to view)