The price of Brent crude oil stayed above $111 a barrel this evening, but it was below recent highs after Saudi Arabia, the world's top oil exporter, raised output to calm fears of supply disruptions sparked by the uprising in Libya.
Saudi Arabia has increased its output by more than 700,000 barrels per day, to a level exceeding nine million bpd, a senior industry source familiar with Saudi production told Reuters.
Trading was volatile as investors worried about the worsening situation in Libya, where oil outages have risen to as high as three quarters of its 1.6 million bpd output. Estimates of the supply loss could not be confirmed, however, as conditions remain unsettled.
The disruptions pushed Brent to almost $120 and US crude to more than $103 on Thursday, with Brent shooting ahead as more of Libya's oil exports go to European refiners than to those in the US.
In London this evening, Brent was up 14 cents at $111.50 a barrel. US crude fell eight cents to $97.20.
