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Oil price hits 14-month high on Egypt worries
The price of oil has broken through $100 a barrel for the first time in almost a year, amid concerns the political turmoil in Egypt could disrupt Middle East supplies.
US crude jumped $1.64 to $101.2 a barrel overnight, its highest level since May 2012, while Brent crude also rose, up 1.76% to $105.76 a barrel.
Concerns the unrest in Egypt could reduce supply in the Middle East, which pumps a third of the world’s oil, led to a rise in demand for oil in the US, in turn boosting spot prices.
A report from the US Energy Department revealed US crude supplies have hit a 13-year low, down by 10.3 million barrels daily.
Traders are worried the political upheaval in Egypt could slow the flow of oil from the Middle East as Egypt controls one of the region’s biggest shipping lanes.
The Egyptian president, Mohammed Morsi, is facing protests from millions of protesters who are calling for his resignation.
