Oil market effected by unrest in Libya - WKOW 27: Madison, WI Breaking News, Weather and Sports

Oil market affected by unrest in Libya


CAIRO (WKOW) -- Oil prices continue to surge all across the U.S. Experts say, the situation in Libya and the unrest in the Middle East could be the cause. Officials are now stepping in to try to fix the problem.

The chief executive of Saudi Arabia's state-run oil giant says it has stepped in to compensate for an export shortfall stemming from the unrest in Libya.

Saudi Aramco's Khalid Al Falih declined on Monday to specify how much additional oil Saudi Arabia -- the de facto leader of the Organization of the Petroleum Exporting Countries -- has pumped into the market.

Libya produces about 1.6 million barrels per day, and exports much of that crude to Europe. But the fighting that has gripped the nation, as Moammar Gadhafi struggles to hold onto, power has resulted in an at least 50 percent drop in production.

Saudi Arabia and other OPEC members have said they are ready to step in to compensate for any Libyan export losses.

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