U.S. oil climbs more than $2 on U.N. Libya vote

[Chickadee]

Reuters:

 

(Reuters) - U.S. crude oil futures jumped $2 a barrel after Thursday's settlement following a vote by the United Nations Security Council authorizing the imposition of a no-fly zone over Libya.

 

April-delivery crude hit $103.47 a barrel, up $2.05, on the New York Mercantile Exchange's Globex trading platform in minutes after the U.N. vote.

 

"Apparently the market is thinking an air-exclusion zone would keep the conflict alive," said Peter Beutel, president of Cameron Hanover in New Canaan, Connecticut.

 

A continuing conflict in Libya could mean uprisings continue or break out in other oil-producing states in North Africa and the Middle East.

 

"I think the one that people are watching most is Bahrain because it's so close to Saudi Arabia," Beutel said.

 

On the NYMEX Thursday U.S. crude for April delivery settled up $3.44, or 3.51 percent, at $101.42 a barrel, after rallying to $101.99. It was also the biggest one-day percentage gain.

(Reporting by Erwin Seba; Editing by Bernard Orr)[/indent]