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| Egypt unrest pushes light crude oil over $100 a barrel | Egypt unrest pushes light crude oil over $100 a barrel |
| (35 minutes later) | |
| The price of US light crude oil has risen above $100 a barrel for the first time since September 2012 on concerns over political turmoil in Egypt. | The price of US light crude oil has risen above $100 a barrel for the first time since September 2012 on concerns over political turmoil in Egypt. |
| US light crude rose more than 2% to $101.80 a barrel in Asia trade. Brent crude also rose 1% to 105.20 a barrel. | US light crude rose more than 2% to $101.80 a barrel in Asia trade. Brent crude also rose 1% to 105.20 a barrel. |
| Egypt's President Mohammed Morsi has rejected an army ultimatum to resolve the turmoil by Wednesday, triggering concerns that the crisis may escalate. | Egypt's President Mohammed Morsi has rejected an army ultimatum to resolve the turmoil by Wednesday, triggering concerns that the crisis may escalate. |
| There are fears this may hurt oil supplies through the Suez Canal. | There are fears this may hurt oil supplies through the Suez Canal. |
| "The turmoil in Egypt has caused the market to inject some premium into oil futures," Victor Shum, a vice president at IHS Energy Insights, told the BBC. | "The turmoil in Egypt has caused the market to inject some premium into oil futures," Victor Shum, a vice president at IHS Energy Insights, told the BBC. |
| Growing concerns | Growing concerns |
| Over recent days, thousands of protesters have gathered in Tahrir Square in central Cairo to demand that Mr Morsi step down. | Over recent days, thousands of protesters have gathered in Tahrir Square in central Cairo to demand that Mr Morsi step down. |
| Meanwhile, supporters of Mr Morsi have held their own demonstrations backing the president. | Meanwhile, supporters of Mr Morsi have held their own demonstrations backing the president. |
| At least 16 people died at one pro-Morsi rally on Tuesday night. | At least 16 people died at one pro-Morsi rally on Tuesday night. |
| On Monday, Egypt's army had warned that it would step in unless a solution were found, giving Mr Morsi 48 hours to find agreement with the opposition. | On Monday, Egypt's army had warned that it would step in unless a solution were found, giving Mr Morsi 48 hours to find agreement with the opposition. |
| The army's ultimatum expires around 16:30 (15:30 BST) on Wednesday. | The army's ultimatum expires around 16:30 (15:30 BST) on Wednesday. |
| However, Mr Morsi has insisted he remains the country's legitimate president. | However, Mr Morsi has insisted he remains the country's legitimate president. |
| Analysts said that markets had been worried about the developments in Egypt and there were concerns that the protests may spread. | Analysts said that markets had been worried about the developments in Egypt and there were concerns that the protests may spread. |
| "There is a real concern in the oil market about the situation in Egypt, and whether the unrest could spread to the rest of the Middle East," said Michael McCarthy, chief market strategist at CMC Markets. | "There is a real concern in the oil market about the situation in Egypt, and whether the unrest could spread to the rest of the Middle East," said Michael McCarthy, chief market strategist at CMC Markets. |
| "In fact, it's not just Egypt, dealers are closely watching the situation in Libya and Syria as well," he added. | "In fact, it's not just Egypt, dealers are closely watching the situation in Libya and Syria as well," he added. |
| Temporary spike? | |
| However, some analysts believed the jump in prices was likely to be temporary, saying that global economic growth had been slowing and, as a result, demand for oil was likely to remain low. | |
| "There is more than enough crude supply and there is relatively weak demand," said Tony Regan, principal consultant at oil and gas consultancy Tri-Zen. | |
| Mr Regan noted that the US, one of the biggest consumers of oil, had also been reducing its reliance on Middle Eastern oil - a move that should see prices ease. | |
| David Lennox, a resources analyst with Fat Prophets added that, given the global demand and supply situation, "the price should not be at the current levels". | |
| He said that US light crude should realistically be trading between $90 and $95 a barrel. | |
| "If the Egypt crisis does not escalate into something bigger then prices are likely to fall to that level," he said. | |
| Mr Lennox said that the upcoming 4 July holiday in the US, which traditionally sees increased demand for oil due to more people travelling by road, had also impacted the prices. |