Hi, im very new to Forex trading (still using demo accounts) and was wondering if the current turmoil in Libya would create a favourable trading situation to take advantage of?
Absolutely. Buy oil!
I recommend Castrol GTX - liquid engineering.
And turn off Al-Jazeera to increase the advantage - grizzly images!
Seriously, the oil rise isn’t solely on the Libya crisis. Its just the market doing its thing.
Sorry about taking the mickey out of your question, but the simple answer is no.
It’s interesting to see how the USD lost his safe-haven status during the Middle East turmoil. Everyone (the big players at least) were buying Swissie. 
IMHO i think, that oil price will always be going up. It’s no point of going short. The best investment, in some sence