Week Low in New York as Libyan Rebels Make Gains

Futures yesterday fell for a third day after rebel forces pushed westward with support from Allied air strikes on Sirte, Qaddafi’s hometown, as France and the U.K. said the Libyan leader “must go immediately.” Crude has rallied 23 percent since anti-government protests began Feb. 15 in the country, a member of the Organization of Petroleum Exporting Countries.

“Speculation that territorial gains by Libyan rebels could speed up a resolution and active discussions to have sanctions lifted on purchases of crude produced from Libyan fields no longer in Qaddafi’s control removed some of the supply risk premium from the market,” Mark Pervan, head of commodity research at Australia & New Zealand Banking Group Ltd. in Melbourne said in an e-mailed note.

Crude for May delivery was at $103.87 a barrel in electronic trading on the New York Mercantile Exchange, down 11 cents, at 2:40 p.m. Singapore time. It fell as much as 80 cents, or 0.8 percent. Yesterday, the contract dropped $1.42 to $103.98, the lowest settlement since March 22. Futures have gained 14 percent between January and March, a third quarterly increase.

Brent crude for May settlement on the London-based ICE Futures Europe exchange was at $114.73 a barrel, down 7 cents. Yesterday, it declined 79 cents, or 0.7 percent, to $114.80.

Uprising

Libya’s conflict is the bloodiest in a wave of uprisings that has toppled the presidents of Tunisia and Egypt and spread to Algeria, Bahrain, Iran, Oman, Syria and Yemen.

OPEC, which pumps about 40 percent of the world’s crude, won’t need to compensate for a drop in Libyan output, according to Algerian Oil Minister Youcef Yousfi. Current oil prices are “not driven by fundamentals,” said Ali Al-Yabhouni, the United Arab Emirates governor to the 12-member group.