Monday, February 7, 2011

Crude Oil Jumps Above $100 a Barrel On Monday Due to Egypt's Continued Political Turmoil

CAIRO - The unrest in Egypt eased up a bit over the weekend as opposition parties and the government agreed for a table talk. But President Hosni Mubarak still didn’t hint his exit and agitation is underway in Cairo. The political turmoil started from Tunisia and caught up Egypt; has already shown its existence in Yemen and other countries of the area including Algeria, a major oil and natural gas exporter.

But with President Hosni Mubarak still in power and protests continuing in Cairo, the situation remains too much in flux for the oil market to give back recent gains. Other countries, including Algeria, a major oil and natural gas exporter, are also dealing with protests of their own.

In the wake of current situation in the region; North Sea Brent crude oil futures soared above $100 a barrel on Monday, expecting turbulence in Egypt could spread to other parts of the Middle East and North Africa, upsetting energy supplies.

If the chaos in Egypt continued over the weekend oil prices could go beyond $110 per barrel, a concerned senior Kuwait official said;  while Venezuela said prices could more than double to $200 if the Suez Canal closed.

Iran, which holds the rotating presidency of the Organization of the Petroleum Exporting Countries, said it saw no need for an emergency OPEC meeting even if oil prices hit $120.

No comments:

Post a Comment

VigLink

Related Posts Plugin for WordPress, Blogger...