Fall of Gaddafi 'may cut oil costs'

The end of Muammar Gaddafi's regime in Libya would likely result in a drop in global oil prices, according to an industry insider.

Along with car insurance and other key motoring outgoings, drivers in the UK have had to contend with sharp rises in their fuel costs in recent months.

However, although Andrew Lipow - president of Houston-based Lipow Oil Associates - believes it could take some time for the full impact of a regime change in Libya to be felt, he does suggest oil costs could eventually decrease.

Rebel forces opposed to Gaddafi entered the capital of Tripoli on Sunday, with a major military base also being taken by the fighters.

The forces did not come up against much resistance, and reports now indicate that Gaddafi's son, Saif al-Islam, has been arrested.

As a result of the recent Libyan crisis, it is believed that oil prices have gone up by 20 dollars a barrel.

Copyright © Press Association 2011

UKBC: Main (4.50)

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