Oil price soars amid Libya unrest

Oil prices have jumped sharply on Tuesday amid news of violence in Libya, a major oil exporter. Brent North Sea crude for April delivery jumped to 79 euros per barrel, the highest level since September 2008. The White House said it was monitoring the situation in Libya, but could not speculate as to how it would affect pricing.

Reuters/ Bernadett Szazbo

Meanwhile, Saudi Arabia's Oil Minister Ali al-Naimi said on Tuesday that Organization of the Petroleum Exporting Countries (Opec) is prepared to meet any shortage of supplies due to unrest in Libya or elsewhere.

Al-Naimi said that he knows there is concern and fear regarding oil availability, but "Opec and particularly Saudi Arabia will compensate any shortage because we did that successfully in the past."

"I want this transmitted to the market so the people can sleep well tonight," he added.

Christophe Barret of Credit Agricole Corporate and Investment Bank in London said that Opec could make up any oil disruptions due to the uprising in Libya. Libya currently produces between five and six million barrels of oil a day, said Barret. Problems could arise, however, because "you will not replace Libyan crude oil with the exact same type of quality of crude."

Barret added that the cost involved and the time involved to replace the oil experts would have to be factored in to any delays as well.

"There is no direct relation between an uprising in the country and oil exports, but in Libya's case, there is a dire threat to oil exports from Libya," he said.