Egypt crises worries investors as the West Texas Intermediate and Brent futures hit its highest level for the fifth day in a row. It reached its highest in over four month as the crises in oil-rich Egypt worsens. While crude prices extended its gains, investors are worried over the supplies that come through Egypt and the fall in the US Oil inventories.
The WTI Futures rose 0.24% to $107.11 a barrel on the New York NYMEX at the time of writing, while the Brent futures reached the $111 level, up 0.57% to $110.83 at the same time.
The on-going crisis across the oil-producing countries in the Middle Eastern region continues to spark worries amongst investors as the oil industries in Iraq, Libya and Egypt are at risk.
In the past recent weeks, the US Oil supplies have reduced to almost six times, as the inventories decreased to 360.5 million barrels in the week that ended August 9th, according to reports from the Energy Information Administration (EIA).
Gasoline stockpiles were also seen lower than forecasted in the report, falling by 1.2 million barrels. Distillate stockpiles rose by 2 million barrels, higher than the predicted 1 million rise.
Egypt Crises
Investors are worried about the important Suez Canal oil chokepoint during the crackdown events in Egypt. Egypt manages the Suez Canal and the Suez- Mediterranean Pipeline which combines approximately 4.51 million barrels a day. Crude and refined products were shipped across the Red sea and the Mediterranean last year, according to EIA.
Almost 35% of the world’s oil output was accounted by the Middle East in the first quarter, according to data from the International Energy Agency.
More violence have been sparking in Egypt, as the bloody crackdown took place on Wednesday ,when protestors assembled at two different sitting organized against the military-supported Adly Monsour. According to reports over 500 people died.
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