Last Update 21:11
Friday, 20 September 2019

Global oil prices rise on Egypt concerns

International petrol prices climbed higher on Tuesday amid continued concerns that Egypt's ongoing political crisis could disrupt flow of oil from region

AFP, Tuesday 2 Jul 2013
Share/Bookmark
Views: 1249
Share/Bookmark
Views: 1249

Oil prices Tuesday climbed higher on continued concerns that the political crisis in Egypt could disrupt the flow of petroleum from the Middle East.

US benchmark West Texas Intermediate for August delivery hit its highest level since May 2012, jumping $1.61 to $99.60 a barrel on the New York Mercantile Exchange.

Brent oil futures rose $1 to $104.00 a barrel for August delivery.

Markets are cautiously watching Egypt amid the popular mobilization against President Mohammed Morsi after he snubbed an ultimatum from the army to agree to the "people's demands" or face an imposed solution.

Clashes broke out Wednesday between allies and opponents of the embattled president. Several top Morsi administration officials have resigned in recent days.

The crisis has revived concerns about key oil chokepoints that could be disrupted, said Andy Lebow, senior vice president of energy derivatives at Jefferies Bache. These include the Suez Canal and the Sumed Pipeline, which runs through Egypt and has the capacity to ship some 2.5 million barrels of oil a day, or about 2.7 percent of daily global consumption.

In addition, there is also the risk the strife in Egypt could spread to other countries, Lebow said.

"The market is concerned that perhaps as the situation unravels, that will just destabilize an already unstable region," Lebow said.

"A lot of issues with the Middle East are keeping pressure on the market," said Carl Larry, analyst at Oil Outlooks & Opinions.

Upbeat US economic data has meanwhile boosted hopes for stronger energy demand in the world's top crude consumer, analysts said.

The Institute for Supply Management on Monday said its purchasing managers index of US manufacturing activity rose to 50.9 in June, up from May's 49. Of the 18 manufacturing industries surveyed, 12 reported growth.

Meanwhile, new orders for manufactured goods rose 2.1 percent in May, the Commerce Department said Tuesday. That was above expectations for a rise of 2.0 percent.

Search Keywords:
Short link:

 

Email
 
Name
 
Comment's
Title
 
Comment
Ahram Online welcomes readers' comments on all issues covered by the site, along with any criticisms and/or corrections. Readers are asked to limit their feedback to a maximum of 1000 characters (roughly 200 words). All comments/criticisms will, however, be subject to the following code
  • We will not publish comments which contain rude or abusive language, libelous statements, slander and personal attacks against any person/s.
  • We will not publish comments which contain racist remarks or any kind of racial or religious incitement against any group of people, in Egypt or outside it.
  • We welcome criticism of our reports and articles but we will not publish personal attacks, slander or fabrications directed against our reporters and contributing writers.
  • We reserve the right to correct, when at all possible, obvious errors in spelling and grammar. However, due to time and staffing constraints such corrections will not be made across the board or on a regular basis.
Latest

© 2010 Ahram Online.