The price of oil jumped by more than USD2 per barrel in early trading today, to touch USD116, as the markets came to terms with the weekend's events in Libya which saw US-led coalition forces mount air strikes on key Gaddafi military targets.

The uncertainty of an 'end-game' for the US, UK and French joint action in carrying out the 'all means necessary' UN resolution to protect Libyan citizens from the wrath of the dictator, pushed oil higher, albeit that the slack of Libyan production has already been taken up by other OPEC countries.

Analysts are predicting further shocks in the oil market this week as the markets get increasingly nervous of supply issues in the Arab world turmoil.