Egypt unrest could cause rally in oil market

[RB TexLa]

Egypt unrest may push oil above $110: Kuwait official


KUWAIT (Reuters) – Global oil prices could exceed $110 a barrel if political unrest in Egypt continues, a member of Kuwait's Supreme Petroleum Council said on Sunday.

Oil prices have spiked due to tension in Egypt. Brent crude hit $100 per barrel for the first time since 2008 on fears instability could spread through the Middle East, which together with North Africa pumps over a third of the world's oil.

"I expect oil prices to reach $110 during the first half of 2011, however, it could go above that level if Egypt's current crisis continues," Imad al-Atiqi, a member of the OPEC member's highest oil policy body, told Reuters in a telephone interview.

"A huge amount of oil passes through the Suez Canal and the country's stability is essential for the Middle East's stability, particularly Israel," he said.


http://news.yahoo.com/s/nm/20110206/bs_nm/us_kuwait_oil

[DJ13]

1. Here

http://www.huffingtonpost.com/raymond-j-learsy/the-risks-to-the-suez-can_b_819309.html

[Davis_X_Machina]

2. Oil passing through the Suez Canal...

...and the Red-Sea/Med pipleline together is less than 3% of world production.

It's not 1967 any more.

Speculation, and not the threat of any real supply shock, is driving the price run-up.

[RB TexLa]

3. Speculation does often help many rallies go

[DCKit]

4. The Butterfly Effect.

Well, either that, or speculation.