Oil Spikes on Libyan Unrest

Oil prices surged today as tension in the Middle East grew, particularly in oil-rich Libya.

Light, sweet crude for April delivery rose $5.69, or 6.3%, to $95.40 a barrel, and Brent crude, the benchmark for European countries, topped $105 a barrel, the highest level in more than two years.

"All eyes are on the Middle East and North Africa crisis regarding potential disruptions in oil exports that could drive crude oil prices even higher," Myrto Sokou, an analyst at Sucden Financial, wrote in a research report, according to CNNMoney.com.

Libya is part of the Organization of Petroleum Exporting Countries (OPEC), and the country produces 1.8 million barrels of oil a day. Its oil reserves make up about 3% of the world's supply. The U.S. imports 90,000 barrels of oil a day from Libya.

Anti-government demonstrations have erupted across the Middle East, with the rulers of Egypt and Tunisia being forced out of their positions of power. Protests have spread to Libya, Bahrain and Morocco.

The unrest prompted Fitch Ratings to downgrade Libya's credit rating to "BBB" from "BBB+," and the ratings company cautioned that another downgrade could follow. Rival credit ratings company Standard & Poor’s lowered Bahrain's sovereign debt rating by one notch to “A-/A-2.”