Local Editor
Oil prices on Monday gave up some of the gains won on concerns that the unrest in Egypt could spread across the Middle East and block supplies.
Brent North Sea crude for delivery in October was up four cents at $110.44 a barrel in London midday deals, down on gains won in recent days.
New York’s main contract, West Texas Intermediate for September fell 39 cents to $107.07 a barrel.
“There is still some concern about supplies passing through the Suez Canal and Sumed Pipeline” amid the violence in Egypt and despite a weaker tone on markets, said Desmond Chua, a market analyst at traders CMC Markets.
“Oil prices remain supported by the situation in Egypt with fears that it could spread across the Middle East”, he stated.
Although Egypt is not a major oil producer, traders are worried that the unrest could hit crude shipments through the Suez Canal and Sumed Pipeline, which provide a link between Europe and oil producers in the Gulf.
The canal carries about 2.5 million barrels daily, or 2.7 percent of global supply.
Source: Al Manar
