Oil rebounds above $122 on Libya conflict, Kuwait export halt
SINGAPORE: Brent crude rebounded to above $122 on Wednesday, halting a two-day decline, on fears that the Libya conflict could settle into a bloody stalemate, while a sudden disruption in Kuwaiti oil exports boosted sentiment.
The market shrugged off concerns raised by the IEA and IMF earlier this week that high oil prices are beginning to dent oil demand, as well as a Goldman Sachs forecast that Brent prices would decline sharply.
ICE Brent crude for May rose $1.22 to $122.14 a barrel by 0642 GMT after hitting a high of $122.19. U.S. crude for May delivery reversed earlier losses, and climbed 66 cents to $106.91 a barrel.
The NYMEX contract's earlier 5.8 percent drop from Friday was the biggest two-day percentage loss since May 2010.
"The market is still feeling bullish as there were some disruptions to oil supplies from Kuwait," said Serene Lim, an analyst with ANZ. "Traders could also be buying on dips."
OPEC member Kuwait has temporarily halted oil export operations due to bad weather, a spokesman for the oil sector said on Wednesday.
Oil also remained supported by unrest in the Middle East and Africa as pro-democracy protests flared up across the region while Libya is in a stalemate after an African Union-sponsored peace plan collapsed this week.
"With the Middle East and North Africa crisis, there is at least a 20 percent premium built in oil prices," Ben Le Brun, Sydney-based analyst at CMC Markets said.
Foreign ministers meet in Qatar on Wednesday for talks on Libya's future.
DEMAND FEARS Several key forecasters, including the International Monetary Fund, the International Energy Agency and OPEC, raised fears global fuel demand is ebbing as consumers shunned expensive oil.
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1monic1 hans schauer
RT @livemint: Oil rebounds on Libya conflict, Kuwait export halthttp://bit.ly/g8ttng
JulietLomuscio6 Juliet Lomuscio
@Urbane_Gorilla People in Tobruk threatening to cut off export ofoil from Eastern Libya http://tinyurl.com/478q7m/?=mtcw
JulietLomuscio6 Juliet Lomuscio
@jadeTMB_Horne People in Tobruk threatening to cut off export ofoil from Eastern Libya http://is.gd/BFUeDv?=mtmx
EINOilGasNews Oil & Gas News
Oil Rebounds to Above $122 on Libya Conflict, Kuwait Export Halthttp://r.einnews.com/xHDgun
PEeditorial Petroleum Economist
A shipment of oil has made it out of war-torn Libya, but it may be last for some time to come - http://goo.gl/gxP6K - #oil #Libya
JulietLomuscio6 Juliet Lomuscio
@ArabianSaluki People in Tobruk threatening to cut off export of oilfrom Eastern Libya http://bit.ly/hWo4aA?=mtc1
JulietLomuscio6 Juliet Lomuscio
@lemlibya People in Tobruk threatening to cut off export of oil from Eastern Libya http://ow.ly/4v2oL?=ntq1
