Brent oil trading firm over $100, Egypt tensions escalate

1 February 2011 1 February 2011

BonTrade

Brent oil futures open Tuesday’s trading session firm over $100 a barrel as tensions in Egypt escalate, sending traders and investors into buy mode, concerned over possible oil supply disruption from the Suez Canal.

Latest Brent Oil Price

In London, Brent crude oil futures for March 2011 delivery was trading at $100.58 a barrel, 09.45 GMT this morning on the ICE Futures Exchange after closing near $101 in trading on Monday.

Egypt Tensions Adding Fuel to Higher Oil Prices

The recent tensions in Egypt look set to get worse, adding a fear among many investors that oil supply out of the Suez Canal may get disrupted.

Yesterday, Cairo’s international airport was a scene of chaos as thousands of foreigners sought to flee the civil unrest, with nations around the world sending in planes to fly their citizens out.

Fighting broke out among passengers crammed inside Terminal 3 of the hub, with check-in counters poorly staffed and scant information about departing flights.

Meanwhile, later today Egyptian protesters are gathering for a massive rally in Cairo as they step up their efforts to force President Hosni Mubarak from power.

While Egypt is not a major oil producing country, each day about several million barrels of oil pass through the Suez Canal and an adjacent pipeline, both of which are controlled by Egypt. The Suez remains open and shipping has not been interrupted.

“Those watching it closely do not believe it is terribly likely to happen soon or at all, but recognise the possibility that it could occur.” energy consultant Cameron Hanover said.