The price of Brent Crude went up to $101.08 before settling at $100.01. Earlier today, prices spiked after speculation over the Suez Canal being closed disrupting supply was making rounds over Egyptian turmoil.
However, head of oil producer’s cartel OPEC later clarified that it did not foresee Suez to be closed. A canal official later said the waterway has seen traffic at full capacity.
As the global recovery gained pace, Brent prices have slowly gone up from $70 a barrel in August.
US Light Crude also rose by 3.2 percent and ended at $92.19.
Tom Bentz – broker at BNP Paribas, New York said: “Traders are buying dips on fears that things could escalate further in the Middle East and spread to other countries”.
Adding that oil carriers are yet to be affected, he said: “Everything is still moving and there is no loss of shipping. But there are still concerns – nothing has gone away”.
“Given how important a role Egypt plays in the Arab world and in the Middle East, the unrest adds a new level of anxiety to the oil market”, said James Burkhard, Managing Director of Global Oil at research firm IHS CERA.