Oil rose sharply on Monday after continued air strikes on Colonel Gaddafi’s military sites in Libya increased fears of a supply disruption.
Brent crude for May delivery leapt $2.21 to $116.14 by the afternoon as Gadaffi vowed to repel attacks from UN-mandated nations using missiles and warplanes against military installations.
The Libyan leader responded by saying: “We will not leave our oil to America or France or Britain or the enemy Christian states. We will fight for every inch of our land and liberate every inch of it.”
This suggested Libyan forces may sabotage crude installations, and some traders worry a cornered Gaddafi could lash out in a last stand that disrupts regional tanker shipments.