Libya Declares Force Majeure On Oil Exports Of 1.5 Million Barrels A Day

This is damn scary stuff..

Oil is already at 95 dollars a barrel and rising... I think we'll see 100 dollar oil in the next week.

God forbid this is true and he really does order the oil pipelines be sabotaged.

Get ready for the next major oil shock

Hundreds of people have backed a Facebook campaign calling for a "day of rage" across Saudi Arabia next month to demand an elected ruler, greater freedom for women and release of political prisoners.

Saudi Arabia Uprising Could Mean $140-Plus Oil

“Pricing in Libya supply disruptions is one thing, but what if this social unrest spreads to Saudi Arabia, which holds 20 percent of the world’s oil?” said David Rosenberg, chief economist and strategist for Gluskin Sheff. “Do the math: we’d be talking about $200 oil.”

Saudi Arabia produced 9.8 million barrels a day of crude oil in 2009, 5.4 times more than Libya, according to the U.S. Energy Information Administration. Multiplying $8.44 by 5.4 equals a $45.95 jump in the price of crude.

“Oil would go parabolic,” said Joe Terranova, chief market strategist for Virtus Investment Partners and former energy trader. “The Shiite population (compared to the Sunni ruling family) is more concentrated in the oil producing region. The workers could strike.”

Libya's oil exports may be offline for longer than we presume.

Gaddafi's Next Move: Sabotage Oil and Sow Chaos? Time

There's been virtually no reliable information coming out of Tripoli, but a source close to the Gaddafi regime I did manage to get hold of told me the already terrible situation in Libya will get much worse. Among other things, Gaddafi has ordered security services to start sabotaging oil facilities. They will start by blowing up several oil pipelines, cutting off flow to Mediterranean ports. The sabotage, according to the insider, is meant to serve as a message to Libya's rebellious tribes: It's either me or chaos.

NYMEX crude is now at: $97.60 a barrel.
Brent crude is now at: $109.70 a barrel.