Oil surged in New York after the United Nations Security Council voted to ground Libyan leader Muammar Qaddafi’s air force as continuing unrest in the region renewed concerns the turmoil may spread and disrupt supply.
Futures jumped as much as 2.2 percent after the UN voted to establish a no-fly zone over Libya and demanded a cease-fire with rebels. Oil climbed 3.5 percent yesterday, the most in three weeks, after Qaddafi’s jets dropped bombs around Benghazi while Bahraini security forces arrested opposition leaders. Credit Suisse Group AG raised its forecast for Brent crude traded in London, citing Middle East unrest.
“We’ve had a sharp return of risk concerns,” said Yingxi Yu, a commodities analyst at Barclays Capital in Singapore. “The market is starting to come to grips with the fact that we aren’t going to return to the balance of power that’s held the Middle East together for the past 30 years. It’s going to be a much more uncertain world.”
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