Oil tests $107 a barrel, then falls back

oil pricesClick chart for more oil and other commodity prices By Ben Rooney, staff reporter


NEW YORK (CNNMoney) -- Oil prices closed 1% higher, as the violence in Libya continues to unsettle the market.

The benchmark U.S. contract, West Texas Intermediate, for April delivery gained $1.03, or 1%, to settle at $105.44 a barrel. The contract rose to a high of $106.95 a barrel earlier in the session.

However brent crude, the main European contract, fell 77 cents to $115.18 a barrel.

Oil prices rose nearly 7% last week as fighting between rebels and forces loyal to Libyan leader Moammar Gadhafi escalated. The weeks-long conflict showed no sign of abating Monday, with death toll estimates now ranging from more than 1,000 to as many as 2,000.

The International Energy Agency estimated Friday that roughly 1 million barrels per day of Libyan oil have been taken off the world market so far, even as some crude shipments have resumed. Libya exported 1.6 million barrels per day in 2010.

Saudi Arabia and other members of the Organization of the Petroleum Exporting Countries have pledged to increase production to make up for any lost oil due to unrest in Libya.

But many investors are concerned that the anti-government movement that toppled long-standing governments in Egypt and Tunisia earlier this year could destabilize oil-rich nations in the Middle East. That could further disrupt the supply of crude oil to the world market.

Tom Pawlicki, an energy analyst at MF Global, said in a research report that oil prices could get a boost ahead of a "day of rage" protest scheduled to take place in Saudi Arabia on Friday.

In Washington, meanwhile, there is increasing talk about accessing the nation's strategic petroleum reserves.

Treasury Secretary Tim Geithner told lawmakers Thursday that the U.S. and other nations are prepared to tap back-up oil reserves if Libya unrest continues and severely disrupts oil supplies. However, no official decision has been made.

Despite the supply concerns, many analysts point out that crude stockpiles in the United States and elsewhere remain relatively flush, suggesting that the recent rally in oil prices is driven by speculation.

-- The CNN Wire Service contributed to this report.  To top of page

Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Overnight Avg Rate Latest Change Last Week
30 yr fixed3.98%3.93%
15 yr fixed3.04%3.04%
5/1 ARM3.30%3.69%
30 yr refi4.05%3.99%
15 yr refi3.11%3.10%
Rate data provided
by Bankrate.com
View rates in your area
 
Find personalized rates:
Index Last Change % Change
Dow 16,677.90 216.58 1.32%
Nasdaq 4,452.79 69.95 1.60%
S&P 500 1,950.82 23.71 1.23%
Treasuries 2.28 0.05 2.06%
Data as of 7:20am ET
Company Price Change % Change
Apple Inc 104.83 1.84 1.79%
Bank of America Corp... 16.60 0.20 1.22%
AT&T Inc 33.66 -0.84 -2.43%
Microsoft Corp 45.02 0.64 1.44%
Facebook Inc 80.04 1.67 2.13%
Data as of Oct 23

Sections

Buffett's investment firm lost big on Coca-Cola and IBM this week, but that's about the extent of his losses this year. More

Regulators are about to reveal the results of an extensive health check of Europe's top 130 banks, indicating which may need a cash infusion. More

Using technology developed for the military and implemented in Iraq, schools have installed alarm systems that detect gunfire. More

Dressing up in crazy costumes, traveling the world, posing for photos -- and getting paid to do it. Here are journal entries from a day in the life of professional "cosplay" character, Linda Le. More

Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.