Brent crude rises up to $115.31 a barrel

PanARMENIAN.Net - World oil prices set for yet another high weekly finish March 4 after reports of escalating violence in Libya where pro-Gaddafi forces conducted air-strikes on protestors.

Light sweet crude for April delivery was seen trading at $102.21 a barrel at 12.30 pm Singapore time while Brent crude was at $115.31 a barrel in London.

Analysts said air attacks on protestors by pro-Gaddafi forces turned the tune of events in Libya as more and more nations called for immediate step-down of Gaddafi.

On Thursday, the black gold took a breather when Venezuelan president Hugo Chavez, the only visible supporter for Gaddafi came forward to mediate talks between two factions.

Oil dipped by as much as 2 percent Match 3 following the development but the plan was rejected by Libyan opposition leaders.

However, airstrikes by Libyan forces blown away that opportunity while signs of U.S. economic recovery stoked speculation fuel demand will increase, also helped the black gold to gain.

A U.S. Energy Department report showed country’s crude inventories dropped by 364,000 barrels to 346.4 million in the seven days ended Feb. 25, the first decline in seven weeks.

Oil prices slipped March 3 as April delivery dipped 32 cents to close at $101.91 a barrel on the New York Mercantile Exchange. In London, Brent North Sea crude for delivery in April, a contract more sensitive to the unrest in Libya, shed $1.56 to settle at $114.79 a barrel, Commodity Online reports.