Brent crude rose more than $2 a barrel to a high of $114.50 on Monday as concern persisted about security of supply from the Middle East and North Africa even after top exporter Saudi Arabia boosted supply to meet the shortfall caused by a cut in exports from Libya.
Violent revolt in Libya has shut down as much as three-quarters of its output, according to some estimates. As protests have intensified and spread through the Arab world, investors fear any impact on output from Saudi Arabia.
Brent crude was up $1.79 113.92 a barrel by 12:35 a.m. ET. U.S. crude rose $1.45 at $99.33 a barrel.
Oil price can definitely go down, even priced in dollars. The overall trend and fundamentals are up of course, but if price gets up to $150 again and we have a repeat of "08, price could get down around $50-60 again. As long as the Middle East is on fire, so will oil prices. Of course we brain dead Americans continually waste this incredible resource to drive back and forth to Walmart to buy a bunch of crap we don't need, instead of using it to build a 21st Century, sustainable, environmentally friendly infrastructure. Sad, really.
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