Though we already know that the price of oil is moving to the more expensive side the longer the conflict in Libya continues, many people just weren’t prepared for the most recent increase. This week, oil prices actually surged to over $100 a barrel after military forces launched an attack on Libya over the weekend. These attacks have also inspired many people to try and relocate away from the violence.
These oil gains have come hand-in-hand with the recent air attacks launched by France, the United States, and Britain over the weekend. Starting on Saturday, the allied forces launched airstrikes against Libyan defense systems. It looks like they want to paralyze Gadhafi’s weapons arsenal and ground forces. The attacks also moved quickly and time will tell if they will be effective.
It is interesting to note that overall, oil prices remain barely beneath $106.95 per barrel, which was a record high about two weeks ago, when the Libyan crisis initially began. The oil prices have moved in both directions since then, but are staying on the high side. This could eventually directly influence fuel surcharges that many moving companies charge their clients.
As you are probably so far removed from the goings-on in Libya, you may wonder why the events have such a direct effect on the prices of oil. Libya is Africa’s third-largest producer of oil and is situated on top of the continent’s largest reserves. So, any signs of unrest in that country will move oil prices.
-Jon Huser
