Oil Prices Up amid Libyan Turmoil

A TV grab taken from Al Arabiya channel shows smoke rising in the sky from Libyan leader Muammar Gaddafi`s fortified Bab al-Aziziya compound, in Tripoli, Libya, 23 August 2011. Photo by EPA/BGNES

Even though Monday saw a drop in oil prices in anticipation of the fall of Libyan dictator Muammar Gaddafi's regime, they have went back up amid confusion over the extent of the rebels' hold on Tripoli.

Early on Tuesday, Saif al-Islam, Gaddafi's most powerful son, popped upn in Tripoli, denying the information that he had been captured by rebels and creating uncertainty about the rebels' progress.

That confusion pushed benchmark oil for October delivery up USD 1.34 to USD 85.76 in electronic trading on the New York Mercantile Exchange.

Libya produced 1.6 million barrels of crude oil per day, nearly 2 percent of global supply, before the war cut output. The North African country is the world's 17th oil producer.

After Libyan exports stopped, Brent reached a two-year high of  USD 127.02 in April.

On Tuesday, Al Jazeera has reported citing its own sources that rebels have gained access to the home of Muammar Gaddafi inside the Bab al-Aziziya compound. Hundreds of Libyan rebels are reported to have stormed Col Gaddafi's compound in Tripoli, taking it over.

Other international reports indicated that the rebels have not only entered Bab Al-Aziziya, and have subdued the resistance of the pro-Gaddafi forces but have also started to fire into the air in celebration of their success.

According to EU's Foreign Affairs High Representative Catherine Ashton, the rebel forces controlled approximately 80% of Tripoli as of Tuesday.

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