Posted by: mulrickillion | October 21, 2011

Gadhafi’s death helps clear way for oil exports

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AP, Oct 20, 2011 — NEW YORK (AP) — It will still be several months before Libya can export as much oil as it did before it descended into civil war earlier this year. But the killing of Moammar Gadhafi reduces the chance that violence will get in the way as Libya cranks up production again.

And as Libyan crude returns, it could lower the price of oil on the international markets and gasoline at American pumps.

The type of crude produced by Libya, known as light, sweet crude, is rare. It is especially valuable because it is easier for refineries to convert into diesel and gasoline. Many refineries can’t switch easily to processing other varieties of crude.

Before the civil war, Libya produced only 2 percent of the world’s oil. But even small interruptions in oil production can have a big effect on the price because the balance between supply and demand is delicate.

When fears arise that supplies might fall short, traders get nervous, and prices can go up fast. . . .

Gadhafi’s death helps clear way for oil exports – Yahoo! News

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