Posts tagged “Arab Spring”
Geopolitical Risk Rises Again
The unrest in Egypt reverberated across oil markets to a degree, and a cloud of an unknown magnitude hangs over the Middle East North Africa (MENA) region once again. Some analysts expect oil prices, which have already risen to account for the high-octane volatility of Egypt’s political situation, to rise further. The Egyptian military’s crackdown on pro-Morsi supporters in mid-August has led to a significant death toll, with government condemnations ringing across the globe.
Brent crude oil prices have already risen by $10 per barrel since the military took over Egypt’s government in early July. However, conflict in Syria and unrest in Libya have also played a role in rising oil prices. WTI crude was trading at $107.33 per barrel, up 0.45 percent, and Brent up 0.34 percent, at $110.58 per barrel, on the morning of August 15th (GMT), after pro-Morsi supporters were just overrun. By the end of the day, Brent crude futures for September delivery traded at $111.11, the highest since March. A spokesperson for the Suez Canal, which transports oil from the Middle East to global markets, says oil transportation infrastructure security has been re-fortified. The Suez Canal and SUMED (Suez-Mediterranean) Pipeline are strategic routes for Persian Gulf oil and gas shipments to Europe and North America.