Oil could spike to $200 a barrel due to turmoil in the Middle East and the Japanese earthquake's effects on global energy markets, says Russian Finance Minister Alexei Kudrin.
Libya's Civil War has cut 1.1 million barrels per day from the world's crude supply, according to The Telegraph.
Elsewhere in the region, Saudi Arabia has sent troops to Bahrain to help the Sunni monarchy keep Shi'ite dissidents under control, risking disputes with Iran, prompting Kudrin to predict the spike in oil prices, although he said it could be "short-lived."
Plus the shutdown of 11 reactors in Japan has cut power supply, thus forcing the country to import other fuels to keep its economy going.
"We think they will need an extra 200,000 bpd of fuel oil and light crude, as well liquefied natural gas," Eduardo Lopez from the International Energy Agency, tells The Telegraph.
Oil prices plunged Friday after Libya's foreign minister declared a cease-fire and said the government would stop military operations against rebels.
Benchmark crude swiftly dropped afterward on the New York Mercantile Exchange, with the price plunging about $3 in 15 minutes, or nearly 3 percent. West Texas Intermediate oil for April delivery fell 57 cents to $101.85 in morning trading on the Nymex. In London, Brent crude lost 55 cents at $114.10 per barrel on the ICE Futures Exchange.
Prices will stay volatile analysts say.
"There's just so much uncertainty," says PFGBest analyst Phil Flynn, according to the Associated Press. "Everyone's trading emotionally."
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