Oil climbed above $103 a barrel Friday morning following the news that the UN has mandated the enforcing of a no-fly zone in Libya. The market fears the authorization of military action could lead to an escalation and further threaten the flow of crude from the region.
“Hopes of the situation normalizing soon and oil shipments being resumed could now receive a dampener,” said a report from Commerzbank in Frankfurt. “The price of oil should certainly remain volatile.”
Source: The Canadian Press