EU unfazed by oil market conditions

WASHINGTON, March 17 (UPI) -- There are no problems with the supply of oil because of ongoing unrest in crude-producing Libya, the European envoy to the United States said.

Crude oil was trading near record levels in part because of the shutdown of production in Libya, one of the world's top oil producers. This comes despite assurances from Saudi Arabia and Russia that they could make up for shortfalls.

The International Energy Agency said it appears at least half of Libya's 1.6 million bpd is cut out of the market.

Joao Vale de Almeida, the EU envoy to Washington, told Bloomberg News there was enough crude available from alternate suppliers to allay concerns over Libya's shut down.

"The market is sufficiently liquid to allow us to look for other suppliers," he said. "I am told that there is not for the moment a problem in terms of oil supply."

The IEA said it could be "many months" before Libyan crude returns to the market, Bloomberg adds.

French supermajor Total and Italian energy giant Eni are among the foreign companies that removed staff members from Libya.

Forces loyal to Libyan leader Moammar Gadhafi continued gaining ground on rebel forces as members of the U.N. Security Council consider imposing a no-fly zone over the country.