Brent crude at $115 as West Asian unrest spreads

Brent crude oil futures held steady near $ 115 on Tuesday, with the support of a spread of the riots in western Asia, while the uncertainty about consumer demand in the third largest in the world, Japan limited the profits.
Oil prices last week were mixed. He retired for the first time by the immediate negative effect on the energy demand of Japan's strongest earthquake in the registry and investor pessimism over growth prospects in the country.
But from the second half of last week, oil got a boost from the realization that hydrocarbons will have to compensate the loss of nuclear capacity and the escalation of geopolitical tensions in northern Africa and western Asia.
anti-aircraft fire sounded in Tripoli for a third night of Monday, but air strikes on Libya likely slow, a U.S. general said that as Washington keeps being absorbed by the country's civil war.
"It now seems likely that there will be a significant loss of oil supplies from Libya for some time," said Ric Spooner, chief market analyst at CMC Markets.
"This will reduce the buffer of excess capacity and increase the oil market vulnerable to any new supply shocks that may arise. This may see a risk premium remains at the price of oil for some time."
Brent crude for May delivery gained 14 cents to $ 115.10 a barrel by 0546 GMT, less than $ 5 from a 2-1/2-year high near $ 120 hit last month. U.S. crudein May, the most liquid contract before the end of April on Tuesday, shed 3 cents to $ 103.06.
Libya rebels, who were forced to retreat to their stronghold of eastern Benghazi before the air strikes stopped an advance of Gaddafi's forces so far have done little to capitalize on the campaign - raising fears the war could grind to a deadlock.
Oil prices rose about 1% on Monday, the first trading day after the Western powers backed by the UN launched a military campaign in Libya. The total trade volume of crude remained well below average, continuing the trend of last week, underscoring the uncertainty facing the market, brokers and analysts.
Venezuela Oil Minister Rafael Ramirez said there was no need for an emergency meeting of OPEC, despite the military attack against Libya. Some group members have increased production, partly to compensate for the interruption of supplies from Libya.
But crisis is also coming to the country close to Saudi Arabia, the leading oil exporter and home to most of the spare capacity of OPEC.
YEMEN, SYRIA DISTURBANCES
In Yemen, the top generals, ambassadors, and some tribes gave their support for the protesters against the government in a blow to the efforts of President Ali Abdullah Saleh to cope with the demands their immediate release.
Meanwhile, unrest spread in southern Syria, hundreds of people demonstrating against the government in three cities near the main town of Dera, but authorities did not use force to quell the recent protests.
In Japan, smoke and steam rose from two of the most dangerous reactors in an earthquake in Japan nuclear plant halted on Tuesday, suggesting the battle to avoid a disastrous collapse and stop the spread of radiation was far from be won.
Away from the plant, growing evidence of radiation in vegetables, water and milk raised concerns among the Japanese and overseas despite assurances from officials that the levels were not dangerous.
Japan will release another 22 days worth of crude oil reserves of private capital, the Ministry of Commerce, said. The Commerce Ministry had allowed the release of 1.26 million kl of reserves, or three days worth of demand last week.
In addition to support product values ​​were analysts' expectations that the weekly reports on U.S. oil inventoriesshow gasoline and distillate stocks fell last week.
The industry group American Petroleum Institute inventory statistics published for the week ended March 18 on Tuesday, followed by data from U.S. government the Energy Information Administration Wednesday.
(Source: http://www.business-standard.com/india/news/brent-crude-at-115-as-west-asian-unrest-spreads/129789/on)