The new escalation of tensions in the Middle East with the oil production in Libya tending to zero has brought oil prices to the same high levels that were observed before the devastating earthquake and its aftermath in Japan. Early on Monday a second air strike wave on Libya took place while Britain’s Defense Ministry announced that further Tomahawk cruise missiles were launched by a submarine on Sunday night. The combination of the conflict in Libya which is globally the third largest production oil company from the Middle East with the increased demand for energy imports to Japan, following the closure of several of its nuclear plants, could only result into a rise in the prices of Brent.
Besides oil a rise in metals such as gold and silver is developing as investors are seeking options in safe heaven metals. The value of oil is currently traded at $102.73 a barrel while the value of gold is at $1427.69 an ounce. It is of significant interest to observe how tensions in Libya will continue as their impact on the oil and metal market is crucial.