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| Supply fears push oil price to two-and-a-half year high | Supply fears push oil price to two-and-a-half year high |
| (about 3 hours later) | |
| Oil has hit a new two-and-a-half year high on strong US jobs data and worries about the situation in Libya. | Oil has hit a new two-and-a-half year high on strong US jobs data and worries about the situation in Libya. |
| The cost of a barrel of US light, sweet crude reached $108.78 on Monday on expectations of rising demand. | The cost of a barrel of US light, sweet crude reached $108.78 on Monday on expectations of rising demand. |
| Figures released on Friday showed the US unemployment rate fell for the fourth month in a row. | Figures released on Friday showed the US unemployment rate fell for the fourth month in a row. |
| Meanwhile, Brent crude, rose to $119.75 a barrel, just below the peak of $119.79 it hit in February, when the Libyan crisis began. | Meanwhile, Brent crude, rose to $119.75 a barrel, just below the peak of $119.79 it hit in February, when the Libyan crisis began. |
| Supply fears | Supply fears |
| Production by Libya, which is the world's 17th largest oil producer, with a 2% market share, has been almost completely shut down by the conflict there. | Production by Libya, which is the world's 17th largest oil producer, with a 2% market share, has been almost completely shut down by the conflict there. |
| There were also reports on Monday that Libyan rebels were advancing towards the oil town of Brega in renewed fighting in the east of the country. | |
| "In the short term, oil prices look very well supported," said Carsten Fritsch, analyst at Commerzbank in Frankfurt. | "In the short term, oil prices look very well supported," said Carsten Fritsch, analyst at Commerzbank in Frankfurt. |
| "The general market sentiment is positive, but we still feel that prices will come down later this year once the supply fears have dissipated." | "The general market sentiment is positive, but we still feel that prices will come down later this year once the supply fears have dissipated." |
| Iran's oil minister also added to the pressure on oil prices by playing down the need for an extraordinary meeting of the Organisation of Petroleum Exporting Countries (Opec) to discuss whether to increase supply. | Iran's oil minister also added to the pressure on oil prices by playing down the need for an extraordinary meeting of the Organisation of Petroleum Exporting Countries (Opec) to discuss whether to increase supply. |
| Iran currently holds the rotating presidency of Opec, which produces about 40% of world crude. | |
| The organisation is not due to convene to discuss oil production until 2 June 2011, when its 12 member states will meet in Vienna, Austria. | |
| Kuwait, one of the member countries, has said it believes the price of oil should be lower. | |
| Farouk al-Zanki, chief executive of Kuwait Petroleum Corp, the country's state oil company, has been quoted as saying $90 to $100 a barrel would be "the fair price" for crude. |