]The most senior economist in the International Energy Agency (IEA) Fateh Pirol said that the prices of crude oil have "entered the danger zone" as far as the global economic revival is concerned. On March 25, trading the price of Brent oil (benchmark) rose to $116 a barrel and analysts anticipate a further rise in prices as a result of the political upheavals in the Middle East. The export of Libyan oil at the rate of about 1.3 million b/d has been completely suspended.
[Editor's comments: While the Saudis and other oil exporters are seeking to fill the gap created by the absence of Libyan oil from the European markets, the Saudi oil, currently available from the Kingdom's spare production capacity, cannot serve as a substitute for the Libyan light crude sought after by European refineries. Hence, there is imbalance in the demand-supply equation for certain types of crude.]
Source: Al-Sharq Al-Awsat, London, March 26, 2011