Don't miss

Replay


LATEST SHOWS

IN THE PAPERS

Did the left-wing inflate turnout figures in round one of the primary?

Read more

ACROSS AFRICA

Dozens killed in attack on military camp in Mali

Read more

THE DEBATE

Splintered left: French Socialists divided ahead of primary run-off (part 1)

Read more

THE DEBATE

Splintered left: Are Europe's Social Democrats obsolete? (part 2)

Read more

EYE ON AFRICA

Gambia: New president says Jammeh has agreed to cede power

Read more

ACROSS AFRICA

France finally grants Senegalese vets citizenship

Read more

THE OBSERVERS

Pollution threatens island paradise of Mauritius, and one Cameroonian expat's quest to bring safe drinking water to his country

Read more

THE INTERVIEW

Publicis boss encourages firms to move staff to Paris post-Brexit

Read more

THE INTERVIEW

'Fake news has had almost no impact on Wikipedia'

Read more

Business

Nervous eyes on the Suez Canal as Egyptian unrest hits world economy

Text by News Wires

Latest update : 2011-02-01

Egypt’s political turmoil has left traders nervous, pushing oil and gold prices up and sending Asian stock markets down as concerns mount that the unrest will affect trade through the Suez Canal, a vital shipping route.

AFP - World oil prices stayed above $100 a barrel in Asian trade Tuesday on fears the escalating turmoil in Egypt will disrupt supply flows through the strategic Suez Canal.
 
Prices barrelled through the psychological threshold overnight for the first time since the 2008 economic crisis as protests in Egypt demanding the removal of President Hosni Mubarak mounted.
 
Egypt is not a major oil producer, but is home to the vitally important Suez Canal, which carries around 2.4 million barrels of oil a day -- roughly equivalent to the daily output of Iraq or Brazil.
 
New York's main contract, light sweet crude for March delivery, was down 20 cents at $91.99 per barrel in afternoon trade.
 
Brent North Sea crude for March fell 50 cents to $100.51 after touching 101.73 overnight, the highest level since October 2008.
 
Prices were slipping in early Asian trade as traders cashed in their profits, said Ong Yi Ling, investment analyst at Phillip Futures in Singapore.
 
"One of the factors might be profit-taking since we're at 27-month highs," she told AFP, adding that the dip might be temporary as the Egyptian political crisis dragged on.
 
"For Brent, we can still see more upside... If the tensions continue, it will continue to provide support for the oil prices," she said
 
But the ebullient gains on the crude market would eventually be capped by "many parties that are concerned that high prices might form a threat to the economic recovery," Ong said.
 
Egypt has been engulfed in more a week of street protests demanding and end to President Hosni Mubarak's 30-year rule.
 
Analysts from Barclays Capital said while the concerns over Egypt fuelled the oil price increase, "we think that the probability for closure of the Suez Canal is extremely unlikely at the moment."

Date created : 2011-01-31

  • ECONOMY

    Fitch rating agency downgrades Egypt to 'negative' on protests

    Read more

COMMENT(S)