Saturday, February 26, 2011

Fact or Fiction: Is Gaddafi Dead? Oil Settles Near $97 on Rumors Gaddafi Shot

Oil sank from 2-1/2-year highs near $120 a barrel Thursday in a late-day rout, dragged down by an unsubstantiated rumor Muammar Gaddafi had been shot and Saudi Arabia's assurances it can counter Libyan supply disruptions.

A U.S. official said Washington had no reason to believe the Libyan leader was dead after the rumor swept through oil markets and sent prices tumbling more than $2 a barrel just before settlement.

Prices surged in early activity on news the Libyan revolt had caused large disruptions in the OPEC nation's oil supplies — potentially up to three-quarters of output — though the scale of the loss could not be confirmed. (read more)