Washington: The US oil prices have reportedly shot up above 100 dollars a barrel on Wednesday amidst fears of a fall out post the Egyptian unrest could spread to the Middle East.
The U.S. oil prices rose as high as 102.18 dollars before settling at 101.24 dollars a barrel rising 1.7 percent, the highest they''ve been in over a year, CNN reports.
According to the report, though Egypt’s oil production is negligible, it controls the Suez Canal and pipeline which moves 4 million barrels of oil per day, and is one of the largest and most powerful in the Middle East and North Africa.
Analysts at Lido Isle Investors said that any disruption or unrest in the Middle East would result in crude oil price hike.
The Egypt army has declared that since President Mohammed Morsi did not consider their ’48-hour ultimatum’ to meet the demands of the Egyptian people, he has been ousted and his powers will be taken upon by the chief justice of the constitutional court, Adli Mansour.
ClearView Energy Partners said that despite the unrest is in Egypt, it could spread to other Islamist actions against allies of the military, including several other Arab oil producing nations allied with US.
The report said that oil prices have risen about 16 percent in the last two months.