Oil and natural gas daily review (February 24, 2011)

MARKET ROUNDUP

Crude oil rose for a second day on Wednesday, ending at the highest level since October 2008, as escalating violence in Libya disrupted its oil production.

IN FOCUS

- More than a quarter of OPEC member Libya's oil output has been shut down, Reuters calculations showed on Wednesday, as unrest prompted oil firms to warn of production cuts in Africa's thirdlargest producer.

- The White House on Wednesday said higher oil prices caused by Middle East unrest must be monitored but would not stall the U.S. recovery, while reiterating a warning on the risks posed by global imbalances.

- Apache said on Thursday it was beginning to restart oil and gas operations, including its Stag and Van Gogh oil fields and its Varanus Island gas processing hub off the coast of Western Australia as Cyclone Carlos moved away.

- The International Energy Agency will rely first of all on OPEC to meet any loss of Libyan oil and would save its emergency stockpiles as a last resort, its executive director said.

FUNDAMENTAL OUTLOOK

Crude oil prices are trading sharply higher on NYMEX today. We expect a further rise in the prices of crude oil on account of ongoing political tensions in the oil rich middle -east nations.

(Source: http://www.stockmarketsreview.com/commodities/energy_commodities_daily_review_20110224_109409/)