Crude oil futures posted heavy gains on Friday and closed on $104 per barrel as the investors were uncertain about the shortage in global oil supply created due to crisis in Libya.

Crude oil futures contract for April delivery surged 2.5 percent to $104.42 on Friday at New York Mercantile Exchange as compared to $101.91 on Thursday’s North American Session. The contract gained 6.7 percent in the last week.

Tensions arose in Libya as the Libyan opposition rejected the proposal devised by Venezuela’s President Hugo Chavez. Moreover President Obama also disclosed that proposal for making Libya no fly zone is under consideration in case Col Moammar Gadhafi does not hand over his presidency to the opposition. President Obama also said that the US military is ready and is being positioned near Libya if the situation gets worse.

Charles Perry from an energy consulting firm Perry Management commented, “I suspect traders are watching Libya, and for now trading is based on the turmoil there, traders are bidding the price up on what might happen in the future.”

Crude oil also gained on the news of higher job growth and consistent fall in US employment rate for the month of February.

Heating oil futures contract for April delivery gained $0.04 to $3.089 per gallon while gasoline futures contract for April delivery advanced $0.02 to $3.046 per gallon on Friday. According to the Daily Fuel Gauge Report the gasoline price increased 5.6 percent in the last week.

Natural gas futures contract for April delivery also moved up by $0.031 to $3.809 per million British thermal units.