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As widespread, bloody revolt and army defections threaten Muammar Qaddafi's four-decade grip on power, global stock markets are reeling and the price of oil is soaring, hitting a two and a half-year high on Tuesday. Why has the uprising in Libya affected oil the way it has, and how worried should we be? Here's a quick FAQ to shed light on the situation:

Other Arab countries are experiencing uprisings--why are financial markets focusing on Libya?

Libya is the first member of the powerful Organization of the Petroleum Exporting Countries (OPEC) to experience significant protests. The country pumps 1.6 million barrels of oil a day, or about two percent of the world's supply, and exports 1.1 million barrels, making it the world's 17th-largest oil producer. Libya is the third-biggest oil producer in Africa and has the largest proven oil reserves on the continent.

Is Libya more important for oil than Egypt?

Yes. Just under three percent of the oil the world produces pass through Egypt's Suez Canal and Sumed pipeline, but Egypt is not an oil exporter like Libya.

Is Libya's oil production really in danger?

Foreign Policy's Steve LeVine notes that Qaddafi has lost control of the eastern part of his country, where half of the oil industry is based. But he adds that Libya's oil installations are located far from population centers, and the oil sector may be able to run "autonomously from any trouble, continued instability and chaos in the cities."