Reply #3: Oil near $105 as Gadhafi takes back Libya oil port

[Pale Blue Dot]

SINGAPORE – Oil prices rose to near $105 a barrel Thursday in Asia after control of a key oil port swung back to forces loyal to Libyan leader Moammar Gadhafi, dimming hopes of a quick rebel victory and a restart of crude exports.

Benchmark crude for May delivery was up 72 cents to $104.97 a barrel at late afternoon Singapore time in electronic trading on the New York Mercantile Exchange. The contract fell 52 cents to settle at $104.27 on Wednesday.

In London, Brent crude was up 87 cents at $115.82 a barrel on the ICE futures exchange.

On Wednesday, Gadhafi forces pushed rebels out of Ras Lanouf, an important oil terminal that has switched between the two sides several times since the uprising began last month. The latest rebel setback has raised speculation that coalition powers, which have bombed government forces for two weeks, may send ground troops to protect the rebellion or overthrow Gadhafi.

http://news.yahoo.com/s/ap/oil_prices