Oil price falls, slightly, as Gaddafi shows signs of panic
The oil price fell slightly today on reports Libyan leader Muammar Gaddafi was looking for a way to step down from power in Libya and end the fighting that has slashed the nation's oil exports, while OPEC's assurances of supply also soothed investors.
As much as 1 million barrels of Libyan output has been disrupted by clashes between Gaddafi and rebels, or about two-thirds of normal production. That is equivalent to just above 1% of global daily consumption.
Two Arab newspapers and al Jazeera television said on Monday Gaddafi was looking for an agreement allowing him to step down, but there was no official confirmation of the reports and BBC correspondents were this morning highly sceptical.
Nevertheless, Brent crude was down $1.60 a barrel this morning at $113.44, some way below its peak on 24 February at $119.79.
