Egypt unrest pushes the price of oil to a 14-month high

Supporter of President Mohammed Morsi in Cairo (2 July 2013) There are fears that the current turmoil may escalate into a bigger crisis

Related Stories

The price of US light crude oil hit a 14-month high on Wednesday to over $100 a barrel on concerns over political turmoil in Egypt.

The benchmark US crude rose $1.64 to $101.2 a barrel, its highest since May 2012, while Brent crude rose 1.76% to $105.76 a barrel.

As well Middle East worries, rising US demand for oil also boosted prices.

The US Energy Department said that weekly US crude supplies fell by 10.3 million barrels.

That was the biggest fall in 13 years and was more than three times the drop that had been expected.

It was partly due to a temporary reduction in supplies from Canada as well as increased demand from a refinery in Indiana that had just restarted work.

Flows

Traders also worried that the volatile political situation in Egypt could interrupt oil flows through the Suez Canal and the wider Middle East, which account for around 25% of the world's oil output.

The Egyptian president, Mohammed Morsi, is facing protests from millions of protesters, and the Egyptian military is threatening to disband parliament and put in place a new leadership.

The Suez Canal sees just over 2% of world oil needs pass through it daily.

The Suez Canal Authority, which operates the waterway, said it "has all the authorities needed for running the Canal without being limited by the laws and the systems of the [Egyptian] government".

The rises came despite economic signals from China earlier on Wednesday which suggested construction activity in the country was slowing down - the latest sign of weakening growth - and weakening growth in demand for raw materials - from the country.

More on This Story

Related Stories

More Business stories

RSS

Features & Analysis

  • Signposts showing the US and UK flagsAn ocean apart

    How British misunderstanding of the US is growing


  • Before and after shotsPerfect body

    Just how reliable are 'before and after' photos?


  • Mukesh SinghNo remorse

    Delhi bus rapist says victim shouldn't have fought back


  • A cow wearing sunglasses overlaid with the phrase 'Can't touch this'Cow row

    Thousands rally against the ban on beef in India


From BBC Capital

Programmes

  • Former al-Qaeda double agent Aimen DeanHARDtalk Watch

    Islamic State is about revenge says former al-Qaeda member turned spy Aimen Dean

Try our new site and tell us what you think. Learn more
Take me there

Copyright © 2015 BBC. The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.