Colonel Gaddafi, one of the more ‘flamboyant’ despots of recent times threatens to send Libya into a state of civil war with potentially serious repercussions for Europe.
UK consumers are likely to be hit even harder as the turbulent political situation sweeping the Arab world drives oil prices higher, with stocks dwindling still further every day,
Despite Saudi promises that OPEC would meet any shortfalls in oil supply, oil prices have hit a two-year high, immediately increasing energy costs across the world.
We are due to suffer more than our American cousins in this though: More than 85 percent of Libya’s oil exports go to Europe, over a third going to Italy alone.
In output terms, at least 50,000 less barrels of oil a day are coming out of Libya – and it could shrink further. Some foreign oil companies are reacting to the unrest by shutting down operations and evacuating workers. When you add in the local ports that are closing, yet more output stands to be lost, and that will not be good for our fuel – or our pockets.