Oil Futures Move up

October 21 00:00 2011

New York, October 21 (RainbowNewsLine.com) – Crude oil futures inched upwards in electronic trading on Friday as investors looked on with baited breath at the outcome of key meetings to tackle Europe’s debt crisis. Crude for November delivery CL1X -0.15% added 18 cents, or 0.2%, to $86.25 a barrel on the New York Mercantile Exchange during Asian trading hours. Benchmark Nymex crude-oil dropped 0.9%, to settle at $85.30 a barrel earlier in the North American session.

Investors are focusing on the outcome of the meeting between French and German leaders scheduled for late Saturday in Brussels in order to prepare for a wider summit of European leaders Sunday to finalize on a bailout fund to solve the region’s debt crisis.

The oil market is also analyzing the impact of the death of former Libyan dictator Col. Moammar Gadhafi, who was killed by revolutionary forces in his hometown of Sirte late Thursday. Strategists at Barclays Capital said, “The death of Gadhafi changes very little in the underlying dynamics of the oil picture on the ground.” Production of Libyan oil is gradually improving as the fighting is coming down but analysts feel that “the road to the return to pre-war levels remains a treacherous one.”

Libya’s reserves are the ninth largest in the world and improvement in conditions in that country can influence future oil prices.