Crude Oil Climbs Over $104 Per Barrel (USL)

Crude oil is currently over $104 per barrel, and could go even higher into the close, as traders fear the "weekend effect."

“Traders face a weekend of uncertainty over Libya and several other countries in the Middle East and North Africa,” said James Williams, an economist at WTRG Economics. “In times of political uncertainty in OPEC members, there is often a ‘weekend effect' as there are a lot of bad things that can happen in two days.”

The April crude contract touched as high as $104.64, and is currently sitting at $104.40 as of the time of this writing.

Yesterday crude fell 32 cents on a report that Venezuelan President Hugo Chavez was brokering a peace agreement with Libyan leader Muammar Qadaffi, but those reports have been rescinded. President Barack Obama said that Qadaffi should step down, as he has lost legitmacy.

Williams said that we could see higher oil prices for some time. “It may be some months before the supply interruption risk premium in oil prices is reduced,” said Williams.

MF Global MF, the commodities giant, was similarly bullish on crude for the time being. Analysts at the company wrote, "even if the Libya situation stabilizes somewhat, in that we see a continuation of relatively low-grade fighting between the two sides, there is always a chance of upheaval somewhere else. In this regard, Oman, Bahrain, Iran and Saudi Arabia are all potential flash points and could spring back on the scene at practically any time.”

Shares of United States 12 Month Oil Fund, LP USL are up 69 cents to $47.68, a gain of 1.5%.