Crude oil prices rose on Friday in New York after the United Nations Security Council voted in favour of a resolution to impose a 'no-fly-zone' in Libya besides allowing the US and allies to launch military action against Muammar Qaddafi’s forces.
Crude for April delivery gained as much as US$2.24 to US$103.66 a barrel, in electronic trading on the New York Mercantile Exchange, and was at US$102.95 at 12:22 p.m. Sydney time.
Yesterday, it jumped US$3.44 to US$101.42, the highest close since March 10.
Oil prices are up 1.8% for the week and 25% higher than a year ago.
Brent crude oil for May settlement climbed US$1.15, or 1%, to US$116.05 a barrel on the London-based ICE Futures Europe exchange. Yesterday, the contract advanced US$4.30, or 3.9%, to US$114.90.
United Nations on Thursday authorized the use of “all necessary measures” to protect civilians in Libya, opening the door to air and naval attacks against Gaddafi's men.
In a 10 to 0 vote, with five abstentions, the UN Security Council called for an immediate cease-fire in Libya, and approved the establishment of a no-fly zone over Libyan territory.
It also cleared the interdiction of ships carrying supplies to Gaddafi’s government.
The UN Security Council called for end to military strikes against civilian populated areas, including Benghazi.
Oil had climbed yesterday on concern that violence in Bahrain will spill into Saudi Arabia, the world's largest oil producer and exporter.
Bahrain declared a state of emergency on March 15 and called forces from neighboring Gulf countries to help quell a month of protests driven by majority Shiites.
On March 16, about 1,000 people in Al-Qatif protested, seeking an to Saudi Arabian army's incursion into Bahrain.
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