Oil prices hover as traders study Egypt & Suez Canal situation

Oil prices open the week’s trading session mainly flat as investors and traders study the ongoing situation in Egypt and wonder if oil supply from the Suez Canal could be disrupted, which would impact oil futures prices.

Latest Brent Oil Price

In London, Brent crude oil futures for March 2011 delivery was trading at $99.22 a barrel, 08.50 GMT on the ICE Futures Exchange.

Latest WTI Oil Price

US Light crude oil futures for March 2011 delivery was trading at $89.56 a barrel, 08.50 GMT on the NYMEX.

Egypt – Suez Canal – Oil Supply

“The bottom line is that around 3 million barrels a day of crude and products are at risk. We do not see the supply threat coming in the form of organised paramilitary attacks on the Suez Canal or the Sumed pipeline. But there are worries that after having spread from Tunisia to Egypt, the unrest could eventually spread to key oil producers such as Saudi Arabia, an event we consider to be very unlikely.” Societe Generale analysts said in a note to investors.

“The concerns in Egypt are playing on the commodity and financial markets. The proximity to the Suez Canal and the possibility that there might be some constraints to world oil supply is having an impact on the oil prices.” commented Ben Westmore, a minerals and energy economist at National Australia Bank.

Oil Prices Remain Bullish

Hedge funds cut bullish bets on oil futures last week by the most in two months before the political protests erupted in Egypt had oil prices surging higher on Friday, after several days of trading losses.

Traders and larger speculators had reduced their net long positions on rising oil prices by 18 percent in the seven days to 25th January, according to the CFTC’s (Commodity Futures Trading Commission) weekly Commitments of Traders report, which became a losing bet as oil prices surged back nearer to $100 a barrel and generally remain bullish as the Egypt situation continues.

• Brent oil trading near $98, oil futures bull market continues
• WTI oil futures under $89 ahead of weekly EIA oil data
• WTI oil futures trading over $89, prices remain bullish
• Crude oil prices hit 2 year highs, traders eyeing $100 oil
• WTI crude oil price surges to $89 on traders buying frenzy
• Brent oil price trades firm at $98, weak US dollar supports
• WTI oil trading firm at $86, awaits US oil supply data
• Brent oil price nears $96 after settling at eight week low
• Brent oil price falls under $97 on Saudi forecasts for 2011
• Brent oil trading firm at $98 a barrel on weaker US dollar
• WTI oil price trades back under $90 on US crude oil data
• Brent oil looses steam, trades under $97 on China concerns
• Brent oil trading firm at $98, ICE US Dollar Index weakens
• Brent oil trading at $97, IEA says high prices to continue
• Brent oil price ends week firm over $98 on weaker US dollar
• WTI oil trading near $91 on US jobs data, crude oil supply
• Brent oil price trading firm over $98 on weaker US dollar
• WTI oil price trading back at $88, US dollar makes gains
• Brent oil trading at $95 as 2011 demand boosts oil prices
• WTI oil price firm over $91, awaits US oil supply numbers

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Oil prices hover as traders study Egypt & Suez Canal situation