Don't miss

Replay


LATEST SHOWS

MEDIAWATCH

Dotard: An educational insult

Read more

IN THE PAPERS

Donald Trump v NFL: America's divider in chief or America's saviour?

Read more

THE WORLD THIS WEEK

Power Play in Barcelona, May's Brexit speech

Read more

IN THE PAPERS

National security or personal freedom? French MPs discuss anti-terrorism bill

Read more

PEOPLE & PROFIT

Brexit and the city: Paris, Frankfurt, Dublin vying for new business

Read more

#TECH 24

Medtech: Repairing the human body

Read more

ENCORE!

Jennifer Lawrence on why she's unafraid to speak out

Read more

#THE 51%

Hola "Ellas Hoy" - The 51 Percent welcomes its sister show on FRANCE 24 Spanish

Read more

YOU ARE HERE

A stroll through the Corsican city of Calvi, jewel of the Mediterranean

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)