Libya Holds Microsoft (MSFT) Employee for 3 Weeks

An employee of Microsoft (NASDAQ:MSFT) based in Libya has been held by the Libyan government for almost 3 weeks, for allegedly unknown reasons.

Microsoft has been working on the release of Khalid Elhasumi, country-wide manager of its Libya operations, who joined the company in 2010.

Microsoft's vice president of Middle East and Africa operations, Ali Faramawy, said the company hopes he will be released soon by the government.

The means of the attempted release is through various international organizations. Elhasumi has been held since March 19.

Hess (HES) (CNX) (OXY) Shares Rise as Energy Surges

Shares of Hess (NYSE:HES) Consol Energy (NYSE:CNX) and Occidental Petroleum (NYSE:OXY) are all jumping today as the oil price reached its highest level since 2008 and uncertainty surrounding nuclear because of the Japan earthquake disaster has other segments like coal and natural gas looking to increase in demand.

The price of oil continues to rise on the ongoing conflict in Libya, which has pushed the price per barrel past $106 today.

Natural gas prices are also expected to start rising, as they stand at lows because of the large amount of supply. That could level off again as the events around the world settle down.

Hess was trading at $85.35, gaining $1.54, or 1.84 percent, as of 12:19 PM EDT. Consol was trading at $54.45, up $1.14, or 2.14 percent. Occidental was at $105.15, rising $1.39, or 1.34 percent.

BP (BP) Libyan Contract Still in Place Says Company

A spokesman for oil giant BP (NYSE:BP) said as far as the company knows, their contract with Libya's NOC remains in place.

He said, "At the moment we just have to wait and see. We're monitoring the situation. We have a contract with NOC and as far as we know it is still in place."

Shokri Ghanem, chairman of NOC, said last week the Libyan government would honor existing contracts with Western oil companies. He said, "We have our contracts with them. We will honor our commitments and I'm sure that they will honor their commitments."

After pressure from Western governments though, Gaddafi has said he'll replace those energy companies with those from China, India and Russia.

Even in a best case scenario, the production of the highly-desired light, sweet oils will take months to return to prior levels, suggesting gas prices could remain high for months, if not longer.

BP closed Thursday at $44.68, gaining $1.43, or 3.31 percent.

BP (BP) Suspends Libyan Exploration as Unrest Intensifies

Eni SpA, the largest foreign oil producer in Libya, fell the most in 19 months in Milan trading, and BP Plc (NYSE:BP) suspended exploration because of worsening violence in the North African country.

Eni, which produced 244,000 barrels of oil equivalent a day in Libya in 2009, fell 5.1 percent, the most since July 2009. The company said in a statement that production is continuing as normal. BP has no producing assets in Libya and is evacuating families and non-essential staff, said David Nicholas, a spokesman for Europe’s second-largest oil company.

Libya holds the largest crude oil reserves in Africa and oil prices rose to a two-year high today. Saif al-Islam Qaddafi called on protesters against his father Muammar Qaddafi’s 41- year rule to engage in dialogue or face a civil war that risks the country’s oil wealth, warning that “rivers of blood will flow” if demonstrations continue.

“The violence is unsettling and it’s definitely right to be cautious,” said Jason Kenney, head of oil and gas research at ING Wholesale Banking in Edinburgh. “It seems like Eni is most at risk. The gas coming into Europe is quite significant, so it’s a concern.”





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United Continental (NYSE:UAL), FedEx (NYSE:FDX), Ford (NYSE:F), Hewlett-Packard (NYSE:HPQ) Bloodied on Down Wednesday

Wednesday isn't a day too many investors want to remember, unless you're in energy, as stocks like United Continental (NYSE:UAL), FedEx (NYSE:FDX), Ford Motor (NYSE:F) and Hewlett-Packard (NYSE:HPQ) took a beating on a number of factors converging at once.

U.S. stocks fell, dragging benchmark indexes to the biggest two-day drop in six months, as oil surged to $100 a barrel amid growing tensions in the Middle East and Hewlett-Packard Co.’s forecasts trailed analysts’ estimates.

Hewlett-Packard, the largest computer maker, tumbled 9.6 percent. Ford Motor Co. sank 2.4 percent after announcing a recall of 144,000 pickup trucks and as a Supreme Court ruling opened the auto industry to new lawsuits over seatbelt design. Lowe’s Cos. (NYSE:LOW) slid 1 percent after forecasting profit that missed analyst estimates. Chevron Corp. rose 1.9 percent as oil climbed to a 28-month high amid escalating violence in Libya.

The Standard & Poor’s 500 Index fell 0.6 percent to 1,307.40 as of 4 p.m. in New York and is down 2.7 percent over the last two days. The Dow Jones Industrial Average slid 107.01 points, or 0.9 percent, to 12,105.78 today. The Chicago Board Options Exchange Volatility Index, which measures the cost of using options as insurance against declines in the S&P 500, jumped 5.6 percent to 21.96, the highest since Nov. 30.

The Dow Jones Transportation Average slumped 2.1 percent to 4,986.21, the lowest level since Dec. 1. United Continental Holdings Inc. sank 6.8 percent to $22.78, while FedEx Corp. declined 4.3 percent to $89.25.








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Brent Soars Above $110 as Libya Burns

Oil futures rallied above $110 a barrel on Wednesday, posting the biggest three-day percentage gain in a year, as the escalating violence in Libya could further reduce its production.

Between 300,000 and 400,000 barrels per day of Libyan output -- up to 25 percent -- has been shut down, according to Reuters calculations, marking the first cut in oil supplies related to the recent wave of anti-government unrest in North Africa and the Middle East.

After Libyan leader Muammar Gaddafi vowed in a defiant speech on Tuesday that he would not step down, promising severe punishment to his detractors, analysts fear that long-lasting supply disruptions or even permanent damage lies ahead for the OPEC member's oil industry.



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Gaddafi Orders Security Service to Sabotage Oil Facilities

There's been virtually no reliable information coming out of Tripoli, but a source close to the Gaddafi regime I did manage to get hold of told me the already terrible situation in Libya will get much worse. Among other things, Gaddafi has ordered security services to start sabotaging oil facilities. They will start by blowing up several oil pipelines, cutting off flow to Mediterranean ports. The sabotage, according to the insider, is meant to serve as a message to Libya's rebellious tribes: It's either me or chaos.

Two weeks ago this same man had told me the uprisings in Tunisia and Egypt would never touch Libya. Gaddafi, he said, had a tight lock on all of the major tribes, the same ones that have kept him in power for the past 41 years. The man of course turned out to be wrong, and everything he now has to say about Gaddafi's intentions needs to be taken in that context.

The source went on and told me that Gaddafi's desperation has a lot to with the fact that he now can only count on the loyalty of his tribe, the Qadhadhfa. And as for the army, as of Monday he only has the loyalty of approximately 5,000 troops. They are his elite forces, the officers all handpicked. Among them is the unit commanded by his second youngest son Khamis, the 32nd Brigade. (The total strength of the regular Libyan army is 45,000.)




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Why Marathon (NYSE:MRO), Hess (NYSE:HES), Occidental Petroleum (NYSE:OXY) Struggling in Strong Energy Environment

Some have been wondering why energy companies like Marathon (NYSE:MRO), Hess (NYSE:HES), Occidental Petroleum (NYSE:OXY) and ConocoPhilips (NYSE:COP) are struggling in an otherwise strong energy market.

The answer is simple: Exposure to Libya.

UBS (NYSE:UBS) says that Marathon Oil has about 12% of overall production coming out of Libya, Hess 6%, ConocoPhillips 3% and Occidental Petroleum 2%.

Even though UBS attempted to sooth the situation, noting that approximately 90 percent of Libyan oil revenue is taken through taxation and royalties, making the impact not as strong as thought.

That didn't impress investors though, who punished the companies because of the Libyan exposure they have.

It's possible that will keep the share prices of the companies under pressure until more clarity and stability emerges.

Oil Prices Today Surge on Libyan Turmoil

Mounting concerns over Libya's violent crisis weighed on stocks Tuesday and sent oil prices surging, while the earthquake in the New Zealand city of Christchurch pushed the country's currency sharply lower.

With deep rifts opening up in Moammar Gadhafi's regime, air force pilots defecting and a bloody crackdown in the capital of Tripoli, investors are fretting over how the crisis will end and what the impact on the North African country's oil production will be.

Libya is the world's 18th largest oil producer, pumping out around 1.8 million barrels a day, or a little under 2 percent of global daily output. The OPEC country also sits atop the biggest oil reserves in the whole of Africa.

With so much uncertainty surrounding a large chunk of the world's daily oil production, market prices surged. Benchmark crude for March delivery was up $4.80 a barrel, or 5.6 percent, at $92.55 a barrel in electronic trading on the New York Mercantile Exchange. Earlier, it had it had been even higher above $94 a barrel.





Source: AP