Crude Ticks Higher Following Crackdown in Egypt (OIL) (USO)
Crude oil prices rose above $107 per barrel Thursday as violence in Egypt increased with the military crackdown on supporters of ousted Egyptian president Mohammed Morsi. Many believe the Middle East is now more unstable, which could lead to problems in oil shipments as Egypt controls the Suez Canal and Sumed pipeline.
Some expected that transport routes won't be hampered by recent events, but a risk premium is being built into the commodity nonetheless.
In terms of crude output, Libya has become more of a focus. Analysts noted a large drop in output from the OPEC member, down to 650,000 barrels per day from around 1 million barrels per day in the same period last year. The country has cited field closures and export disruptions as leading causes.
Crude for September delivery is up 0.2 percent to $107.09 per barrel on the Comex. Investors are keeping an eye on iPath S&P GSCI Crude Oil TR Index ETN (NYSE: OIL) and United States Oil (NYSE: USO) as news unfolds.
Some expected that transport routes won't be hampered by recent events, but a risk premium is being built into the commodity nonetheless.
In terms of crude output, Libya has become more of a focus. Analysts noted a large drop in output from the OPEC member, down to 650,000 barrels per day from around 1 million barrels per day in the same period last year. The country has cited field closures and export disruptions as leading causes.
Crude for September delivery is up 0.2 percent to $107.09 per barrel on the Comex. Investors are keeping an eye on iPath S&P GSCI Crude Oil TR Index ETN (NYSE: OIL) and United States Oil (NYSE: USO) as news unfolds.
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