Oil prices should fall with Gadhafi overthrow
NEW YORK — Oil prices around the world should start falling if Libyan rebels succeed in toppling Moammar Gadhafi's regime, though the full effect won't be felt for months.
On Sunday night, rebel forces pushed into Tripoli without meeting much resistance.
Independent analyst Andrew Lipow said oil markets will likely respond today by sending prices lower in "a sign of relief that conflict has come to the end." But Lipow said it will take time for the market to erase the hefty price increase that resulted from the suspension of Libyan oil exports since the rebellion began in February.
Libya used to export about 1.5 million barrels of oil per day, almost all of which have been cut off. Although Libyan oil amounted to less than 2 percent of world demand, its loss affected prices because of its high quality and suitability for European refineries.