Oil hits $100 due to Suez supply fears

first_imgMonday 31 January 2011 9:26 pm whatsapp Show Comments ▼ KCS-content Oil hits $100 due to Suez supply fears whatsappcenter_img Tags: NULL by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeMoneyPailShe Was A Star, Now She Works In ScottsdaleMoneyPailUndoThe Sports DropForgotten College Basketball Stars: Where Are They Now?The Sports DropUndoBetterBe20 Stunning Female AthletesBetterBeUndoMagellan TimesThis Is Why The Roy Rogers Museum Has Been Closed For GoodMagellan TimesUndoUpbeat NewsThese 25 Celebrities Ruined Their Career in a Matter of MinutesUpbeat NewsUndoTaco RelishOnly People With An IQ Of 130 Can Name These ItemsTaco RelishUndoautooverload.comDeclassified Vietnam War Photos The Public Wasn’t Meant To Seeautooverload.comUndoLuxury SUVs | Search AdsThese Cars Are So Loaded It’s Hard to Believe They’re So CheapLuxury SUVs | Search AdsUndoElite HeraldExperts Discover Girl Born From Two Different SpeciesElite HeraldUndo Share More From Our Partners Biden received funds from top Russia lobbyist before Nord Stream 2 giveawaynypost.comPolice Capture Elusive Tiger Poacher After 20 Years of Pursuing the Huntergoodnewsnetwork.orgRussell Wilson, AOC among many voicing support for Naomi Osakacbsnews.comBrave 7-Year-old Boy Swims an Hour to Rescue His Dad and Little Sistergoodnewsnetwork.orgInside Ashton Kutcher and Mila Kunis’ not-so-average farmhouse estatenypost.comA ProPublica investigation has caused outrage in the U.S. this weekvaluewalk.comNative American Tribe Gets Back Sacred Island Taken 160 Years Agogoodnewsnetwork.orgFlorida woman allegedly crashes children’s birthday party, rapes teennypost.comAstounding Fossil Discovery in California After Man Looks Closelygoodnewsnetwork.org OIL surged over $100 a barrel for the first time in more than two years yesterday as investors feared the turmoil engulfing Egypt could disrupt shipments passing through the Suez canal and impact supply. Brent crude for March, the global benchmark, leapt by $1.59 to settle at $101.01 a barrel – the highest since Lehman Brothers’ collapse in September 2008 – as the protests against President Hosni Mubarak’s regime intensified.While Egypt is not a major oil-producing country, its Suez Canal is a crucial passageway linking the Red Sea and the Mediterranean through which an estimated two million barrels of oil pass through each day – roughly equivalent to the daily oil output of Iraq.Oil cartel OPEC secretary general Abdullah Al-Badri yesterday tried to reassure markets by saying it would up supply if there was a real shortage, but reiterated that the Suez, which is patrolled by armed guards, remains open with shipping uninterrupted.“We are trading on fear,” said Tom Bentz, a broker at BNP Paribas Commodity Futures in New York. Analysts said that the main concern was that the unrest in Egypt, which follows upheaval in Yemen and Tunisia, could spark turmoil in the Middle East and crucial oil producing regions such as Saudi Arabia – the world’s largest oil exporter. “2011 is already turning out to be a year when it would be risky to get heavily involved in the oil market without maintaining a fairly strong focus on the key geopolitical developments,” said BarCap in a note.Stock exchanges were also rattled by Egypt’s woes with major markets in Asia and Europe falling. Japan’s Nikkei fell 1.1 per cent, London’s FTSE 100 dropped 0.31 per cent to 5,862.94, and Germany’s DAX slipped 0.36 per cent to 7,077.48. The Bank for International Settlements data showed yesterday that French banks were the most exposed to Egypt, being owed £11bn in total by the Egyptian government and companies, with UK banks owed £6.7bn.Violent clashes saw the death toll in Egypt reach over 100 yesterday and local and foreign travel companies have suspended all outgoing trips as tourists rush to evacuate the country. HSBC, which has a total of 100 branches in 13 cities in Egypt, said yesterday it will remain under lockdown for a third day today, maintaining customer access via the Internet and phone. last_img

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