OIL PRICES JUMP TO $102 USD PER BARREL

 

The "no fly zone" gambit makes it mark. 

Oil rose to settle at its highest level since August 2008 on Wednesday after an airstrike near Libya's oil infrastructure raised more fears the OPEC nation's oil sector could become a target in embattled leader Muammar Gaddafi's efforts to hold power.

The earthquake in Japan put a temporary lull in the price spike but it appears that has now been priced in so to speak.

Brent crude settled 93 cents higher at $116.35 a barrel, the highest settlement since August 21, 2008, off the session high of $117.81. The Libyan crisis spurred Brent to a 2-1/2 year high near $120 a barrel on February 24.

U.S. crude futures settled at $102.23 a barrel, up $2.60, ending above $100 for the first time since September 2008. U.S. oil also found some support from U.S. Energy Information Administration data showing a drawdown in U.S. oil inventories.

Crude had pared gains in the morning after EIA data showed inventories at the Cushing, Oklahoma, delivery point for the New York Mercantile Exchange's oil futures contract hit a record high.

Gas prices are going to continue to go up and we could easily see $5 USD regular gas during the summer driving season.