In an attempt to curb the current turmoil and bloodshed in Libya the European Union is setting up sanctions to be taken against the violent oppression in Libya. These sanction may include, embargo and seizing offshore assets of Libya.
For now the turmoil in Libya continues with reports stating that the body count has risen to 2,000 people.
There is already speculation that crude oil price might reach the 220$/b mark, mainly due to the recent threat made by to explode Libya’s oil reserves in an attempt to cut Europe’s supply of oil.
Libya, a member in OPEC and holds the largest oil reserves in Africa with 44 billion barrels as of January 2010, is a major exporter of oil mainly to countries in Europe such as Italy, Germany and France.
While the Middle East turmoil is affecting crude oil price, it is still very early to assess what will come up from Libya and how, if any it will affect the mid and long term crude oil supply and consequently the price of oil.
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