David Wyss, the chief economist at the Standard & Poor's ratings agency, tells Al Jazeera that the reason for the spike in global oil prices is not so much the loss in actual supply from Libya (it has currently cut production by about 1million barrels, which is being made up by Saudi Arabia), but because of the wider implications if the unrest in the country spreads.
He says that if unrest were to spread to the Persian Gulf, oil prices could "quite easily be back to the [2008] $148/barrel" level, the highest level oil prices have ever climbed to.
At the moment, he says with oil priced at about $101/barrel, the markets can cope, but it would be a problem if they approached those 2008 levels.
As for Libya, a supply disruption for a couple of months will not impact too badly either domestically or internationally, but anything longer than that would have more serious implications both for international oil prices but also for Libya's income.
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