Oil prices remain firm amid continuing Egyptian unrest

4 February 2011 4 February 2011

BonTrade

Oil prices for Brent and WTI contract’s remain firm in early trading today as continuing unrest in Egypt has traders and investors on edge about possible supply problems from the Middle East.

Latest Brent Oil Price

In London, Brent crude oil futures for March 2011 delivery was trading at $102.00, 08.15 GMT this morning on the ICE Futures Exchange.

Latest WTI Oil Price

US Light crude oil futures was trading at $90.94, 08.15 GMT on the NYMEX.

The oil market has been on edge since the mass uprising in Egypt began nearly two weeks ago. While Egypt is not a major crude producer, the country is home to the Suez Canal, which carries about 2.4 million barrels daily, roughly equal to Iraq’s output.

“Oil prices would surely rise much further if there were any serious disruption to oil production elsewhere in the region or to traffic through the Suez Canal.” noted research company Capital Economics.

About 2.5 percent of global oil output moves through Egypt via the Suez Canal, according to Goldman Sachs. The waterway continues to operate and the country’s energy terminals are open, Inchcape Shipping Services said yesterday.