Major banks warned OPEC on Thursday that it needs to act as oil prices near levels that could derail economic recovery and that an output loss from another producer after Libya would lead to global shortages and demand rationing.
Goldman Sachs issued a note saying the world would not be able to cope with another Libya-style oil production outage as Brent oil prices rallied by over $8.50 a barrel to near $120 a barrel amid unrest in Libya.
Key Libyan oil player, Italian oil firm ENI, said the OPEC member had lost three quarters of its production.
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