Oil jumps 15% in four days

SINGAPORE – Brent crude jumped almost US$7 in 90 minutes yesterday, hitting its highest since August 2008 and sending a shiver of fear through other commodity markets worried about the economy-sapping effect of high energy prices.

Brent crude yesterday rallied as much as US$8,54 a barrel to a peak of US$119,79. Brent has risen around 15 per cent in four days.Reuters market analyst Wang Tao says technical charts show Brent could be on course for a rise to US$158 per barrel in 2011, well above its 2008 high of US$147,50, while he expects US crude to touch US$159 per barrel.’The situation in the Middle East is causing a lot of uncertainty in the market now, the risk of disruption to major producers in the region is what every investor is watching now,’ said Ken Hasegawa, a commodity derivatives manager at Newedge brokerage in Tokyo.Disruption stemming from the revolt in the world’s No. 12 exporter Libya has cut at least 400 000 barrels per day (bpd) of the country’s 1,6 million bpd output, according to Reuters calculations.’Energy prices are going higher with daily news of falling exports from Libya, but something has to give – either Gaddafi will be overthrown, which seems likely or the Saudis will pump more oil. Either way we should see a dip in oil and rallies in metals.’The turmoil in Libya continued, as thousands of Libyans celebrated the liberation of the east of the country from the rule of Muammar Gaddafi, who has vowed to crush the revolt. Deutsche Bank said yesterday oil above US$120 a barrel would be an inflection point for global economic growth. – Nampa-Reuters