Oil prices hovered below $106 a barrel Friday in Asia as political upheaval in the Middle East and signs of strong global demand keep crude near two-year highs, The Associated Press reports.
Benchmark crude for May delivery was down 8 cents to $105.52 a barrel at midday Singapore time in electronic trading on the New York Mercantile Exchange. The contract fell 15 cents to settle at $105.60 on Thursday.
In London, Brent crude was up 12 cents at $115.84 a barrel on the ICE futures exchange.
Crude prices have jumped 25 percent since protests against Libyan leader Moammar Gadhafi that began in mid-February escalated into a rebellion and shut down most of the OPEC nation’s 1.6 million barrels per day of crude output. Fighter jets from a coalition of nations have pounded Gadhafi’s forces this week but rebels have so far been unable to mount an offensive to overthrow the regime.
Recent signs of strong crude demand in the U.S. and China have helped push prices higher. Chinese oil demand rose 10 percent in February from a year earlier and U.S. gasoline inventories plunged last week, suggesting consumers haven’t cut back driving despite higher fuel costs.
