The Libya uplift sends shares plummet as oil price leaps

The Libya is the first oil exporters leading to be affected by the political crisis in the Middle East. Photo: AFP

Sharp falls in Asian markets during night sparked a sell-off in London and Europe, while Brent crude reaches most of $108 a barrel on concerns exports of crude oil Libya more than 1 m barrels per day may be affected foreign oil companies to evacuate the country staff.

In London, the FTSE 100 index sank as 1. 5pc and CAC 40 France fell nearly $ 2pc moves towards the exit on the high price of oil concern of investors and political turmoil will limit economic growth and hurt corporate earnings.

Better than expected UK, the figures offered loan support limited to UK blue chips, despite news of a surplus of. 7bn £ 3 for public finances of Britain in January, thanks to a bumper haul tax.

UK Government bonds were supported by the new and investors seek refuge with the yield on ten-year gilts down five points from base to 3 68pc.

Michael Hewson, CMC Markets told traders market analyst fears the Libya and broader problems in the Middle East could send global markets in prolonged slump.

"Given that we saw massive gains of the stock market in recent months, investors have been nervous about a possible fix for some time," he said.

"Tensions in the Middle East with the implosion of the Libya and concerns that disorders may extend to Saudi Arabia could provide such a catalyst for a correction as we are approaching some support keys on main indices levels."

The Libya is 18th largest producer of oil in the world, pumping approximately 1.8 million barrels per day, or a little under 2pc of daily production. OPEC countries also depends on the largest oil reserves throughout Africa.

The country is the first oil exporters leading to be affected by political unrest, but traders were also considering events in Iran, the second largest producer in OPEC.

Airlines were among stocks hardest hit in London, under pressure from concerns over the impact of soaring fuel costs.

Europe receives more gross exports of Libya - mainly 85pc jet fuel – with 8 5pc password to the United Kingdom.

However, the Director of the International Energy Agency, Nobuo Tanaka, moved to reassure markets that provides oil are secure.

Speaking at a meeting in Riyadh, Saudi Arabia, he said OPEC nations provided that the cartel can use spare capacity to increase production to meet any shortfall of the Libya or Bahrain.

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