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There is a great impact of Libyan conflicts on Oil and Gold prices. The benchmark price of North American oil was closing in on 102 U.S. a barrel in Wednesday afternoon trading. April oil gained $2.16 a barrel to 101.79. Similarly the European and Asian benchmark prices also rose. Brent rose $1.14 to $116.56 a barrel.
The continuing crisis in Libya is no doubt a prime cause of the continuing increase in prices. Gold prices hit an all time high at $1.439 an ounce as investors seek a safe haven and a hedge against possible inflation. Oil prices have risen 13 per cent as oil production in Libya has been cut in half since the conflict there.
Investors fear that disruption in other oil producing countries could cut off even more supplies. Iran, Iraq, the United Arab Emirates, Kuwait, Bahrain, Qatar, Oman and Saudi Arabia have more than 60 per cent of the world's proven oil reserves. At the same time U.S. crude supplies dropped by 364,000 barrels last week and demand seems to be on the increase.
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