NEW YORK — Oil prices rose as violence in Libya put perceived pressure on supply. Prices rose as high as $106.95 a barrel, their highest since Sept. 26, 2008. With a civil war beginning in Libya prices may rise further. Libya has the largest amount of proven oil reserves of African nations and is responsible for 2% of the world output. Unrest continues throughout the Middle East, besides Israel as Arabs have become frustrated with their totalitarian dictators. The only country in the Middle East to currently have a democratic government is Israel. Saudi Arabia, the world's biggest oil exporter and one of the world's largest terrorist sponsors banned all protests in the kingdom.
Oil prices have risen despite other OPEC nations pledging to make up for the shortfall in Libyan production. Most developed nations have not suffered from oil shortages and over the weekend, the Obama administration signaled it is considering tapping the U.S.'s 725 million-barrel emergency reserve a step the U.S. has not taken since Hurricane Katrina in 2005.
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