Oil prices surge to four-month highs
15 August 2013, 15:00
London - Brent
oil prices climbed above $111 per barrel to a four-month high on Thursday on
fears violence in Egypt
could affect the Suez
Canal or spread in the Middle
East, where supplies are already disrupted.
government declared a state of emergency on Wednesday following deadly
clashes between riot police and supporters of ousted President Mohamed Mursi.
But a Muslim
Brotherhood statement vowing to bring down "Egypt's
military coup" suggested that the standoff was unlikely to be resolved
may not be a major oil producer, but the Suez
Canal is an important gateway, not just for oil flows but also for
commodities. If there is any disruption or if the violence results in the shutting
down of the canal, the impact will be quite severe," said Carl
Larry, president of Houston-based
consultancy Oil Outlook and Opinions.
the deputy oil minister said output had fallen to 600 000 barrels a day due to
field problems. The Ras
Lanuf terminal remained shut after the state-run oil company had said it
could not guarantee crude deliveries in September because of labour unrest at
maintenance at its southern oil export hub is expected to slash supplies by
500 000 barrels per day in September.
"If the demand outlook
is positive, then obviously any threat to supply or actual disruptions are
going to give oil prices a big upside," Larry said, adding that recent
economic data had increased the prospects for stronger oil demand in the United
Data on Wednesday showed
the economies of Germany
grew more quickly than expected in the second quarter, pulling the euro zone
out of an 18-month recession.
US crude inventories fell
2.8 million barrels, with stocks at Cushing,
dropping for a sixth straight week to hit their lowest level since March, 2012.