Brent crude oil prices rose above $112 a barrel in volatile trading this evening. This came as investors weighed reassurances from Saudi Arabia that extra supply needs were being met against the prospect that disruption of Libya's output could be prolonged.
Saudi Aramco CEO Khalid al-Falih told reporters the extra supply needs caused by violent unrest in Libya had been made up. He could not give exact figures because it was 'a moving picture', Falih told reporters.
Brent crude rose 40 cents to $112.54 a barrel, off its earlier $114.50 peak. US crude fell 10 cents to $97.78 a barrel.
Crude oil shipments from Libya were at a virtual standstill because of reduced output and bad weather, according to shipping sources.
Industry reports indicated around half of Libya's production of 1.6 million barrels per day had been cut, while other estimates had put the figure at three-quarters output shut.
Saudi Arabia's reassurances came as regional protests spread to oil-producer Oman, although oil flow had not been affected. Protesters demanding jobs and political reforms blocked roads to a main port in the north of the Gulf Arab sultanate as demonstrations spread.
