The unrest in Egypt overshadows all the economic and industry news today. The fall of the Tunisian government and the violent protests and the government's violent response in Egypt has the markets worried. Egypt exports very little crude but has the most refining capacity in Africa. But the Suez Canal is what makes Egypt important to world oil markets as crude and refined products from the Arabian Gulf go through the Canal into Europe. Any disruptions of the Canal traffic will affect world prices.
There is also fear that the unrest in Egypt will spread across the Red Sea into Saudi Arabia. There are rumors that Iran may be funding some of the protests. The Mubarak regime has fought the Muslim Brotherhood for years and they are now joining the protests. The markets are definitely worried about a worst case scenario about the flow of oil out of the Gulf.
For the week, crude +20¢, $89.31; gasoline -2.45¢, $2.4579; distillate +3.2¢, $2.691.
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