Libya’s unrest pushes up oil prices Libya, although only a small part of the world’s oil production, is a major supplier to many European nations and holds the largest proven reserves in Africa.
Oil supply crisis lurks in Libya Libya is the first major oil producer whose regime is at risk from the uprisings sweeping the Middle East and North Africa. If Libya falls, anyone of the major oil producers could be next. Already, there has been unrest in Yemen and Bahrain, where civic protests continued Tuesday, and calls for change in Saudi Arabia, Kuwait and Oman.
“The world could deal with the loss of Libyan barrels, but the worry is that it won’t stop at Libya,” Bill O’Grady, chief market strategist at Confluence Investment Management in St. Louis, told Bloomberg News. “We don’t know where this is going to end.”