The price of US light crude oil hit a 14-month high today of over $100 a barrel due to fears of increasing unrest in the Suez Canal area, which is the only sea route from Europe and North America through to Asia, which doesn’t require travel via either the South Atlantic or the Pacific. More than 25% of the World’s shipped crude oil and 2% of the World’s oil needs flows through the 200 meter wide Suez Canal.
Written by Chris White
As a consequence the benchmark for US crude rose from US$1.64 to US$101.2 a barrel, – the highest it’s been since May 2012, while Brent crude rose by 1.76% to US$105.76 a barrel.
According to a statement given by the US Energy Department, weekly US crude supplies fell by 10.3 million barrels, the biggest fall for 13 years.
However, today Suez Canal authorities issued a statement saying: “The Suez Canal Authority, which operates the waterway, said it “has all the authorities needed for running the Canal without being limited by the laws and the systems of the government.”
Last night Egypt’s Islamist President, President Morsi was deposed from government in a military coup following massive civil unrest within Egypt’s civilian population, who were opposed to most of President Morsi’s reforms since first coming into office in 2011. Egypt is now for all intents and purposes ruled by a military junta, until the country’s former chief justice is sworn in as the new Interim President tomorrow.
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