According to Reuters, Libya’s Gaddafi is seeking a cease fire agreement with the rebels and the NATO. Spain is among the countries that are reported to receive the ceasefire offer.
It doesn’t seem that the offer will be excepted by the Western leaders as they think that their military efforts in Libya will soon enough push Gaddafi out of his power.
If there will be a ceasefire and the Libyan war will end, this might have a positive affect on the currently tight crude oil market, as it may eventually increase the currently low Libyan oil output, which was back at the beginning of the year at 1.6 million bbl/d and is currently below 300 thousand bbl/d.
Currently, the Nymex crude oil price, short term futures (June 2011 delivery) is traded at 101.06 USD / barrel, a 0.26 USD/b decrease or 0.26%, as of 14.42*.
Current gold price, short term futures (June 2011 delivery) is traded at 1,525.5 USD / t oz. a 2.3$ decrease or 0.15%, as of 14.38*.
Euro to US dollar conversion rate is traded up at 1.4202 a 0.8056% increase as of 14.44*.
The USD/CAD is also traded up at 0.9796 a 0.2266% rises as of 14.44*.
For more on this subject:
- Will the recent rally in oil prices last? Daily outlook 26 May
- U.S. Petroleum stocks inclined, gasoline prices fell – May 26