Oil price hits $116 as plants bombed

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price of Brent crude surged over $116 a barrel yesterday after Mummar Gadaffi’s forces bombed Libya’s main oil terminal.

The attack on the Es Sider terminal was the first against a critical oil facilitity since fighting began, and came as Gaddaffi tried to crush the uprising against him by bombarding the western town of Zawiya and oil towns in the rebel-held east.

Televised pictures of the flames prompted a buying spree in the oil market, with Brent crude surging to a session high of $116.18 – near to its highest level in 2 1/2 years. It later fell to $115.51 a barrel.

Market jitters remain with traders concerned that oil supplies will be disrupted for a long period, despite OPEC promises to pump extra oil.