The Herald of Everett, Washington
HeraldNet on Facebook HeraldNet on Twitter HeraldNet RSS feeds HeraldNet Pinterest HeraldNet Google Plus HeraldNet Youtube
HeraldNet Newsletters  Newsletters: Sign up | Manage  Green editions icon Green editions

Calendar


Weekly business news
HeraldNet Newsletter Delivered to your inbox each week.
Published: Friday, July 5, 2013, 12:01 a.m.

Oil above $101 on Egypt unrest, stockpiles fall

BANGKOK -- The price of oil stayed above $101 a barrel Thursday after being jerked higher by unrest in Egypt and a fall in U.S. energy stockpiles that suggests a recovery in demand.
Benchmark crude for August delivery was up 16 cents to $101.40 at midday Bangkok time in electronic trading on the New York Mercantile Exchange. The contract gained $1.64 to $101.24, its highest close since May 3, 2012, on Wednesday. Nymex floor trading is closed Thursday for the Independence Day holiday.
Two events propelled the price of oil higher in the past day: unrest in Egypt and a big drop in U.S. oil supplies.
Traders were worried that political upheaval in Egypt could slow the flow of oil from the Middle East to world markets. Embattled Egyptian President Mohammed Morsi vowed not to give in to protesters' demands for his resignation. But the head of Egypt's military announced late Wednesday night local time that Morsi will be replaced and new elections will be held.
Egypt is not an oil producer but its control of one of the world's busiest shipping lanes gives it a crucial role in maintaining global energy supplies. The Middle East accounts for about a quarter of the world's crude oil output, or 23 million barrels per day. About 2 million barrels of that, or 2.2 percent of world demand, are transported daily through the Suez Canal, which links the Mediterranean with the Red Sea.
Much of that oil is headed to Europe, but a supply drop anywhere in the world leads to higher prices everywhere.
In the U.S., the Energy Department reported Wednesday that crude supplies fell by 10.3 million barrels from the previous week, more than three times the drop that analysts had expected.
The drop was likely the result of reduced supplies from Canada because of a temporary pipeline shutdown, as well as increased demand from a BP refinery that restarted in Indiana.
Gasoline supplies fell as well, while analysts expected an increase. The drop in oil and gas supplies could be an indication that U.S. demand is rising.
Brent crude, which is used to set prices for oils used by many U.S. refineries, was down 26 cents to $105.50 on the ICE exchange in London.

Share your comments: Log in using your HeraldNet account or your Facebook, Twitter or Disqus profile. Comments that violate the rules are subject to removal. Please see our terms of use. Please note that you must verify your email address for your comments to appear.

You are logged in using your HeraldNet ID. Click here to update your profile. | Log out.

Our new comment system is not supported in IE 7. Please upgrade your browser here.

comments powered by Disqus
digital subscription promo

Subscribe now

Unlimited digital access starting at 99 cents, or included with any print subscription.

HeraldNet Classifieds

HeraldNet highlights

Tulips in bloom
Tulips in bloom: Photo gallery: A rainbow of color in Skagit County
He was a devoted family man
He was a devoted family man: Stephen Neal was working in a home when the mudslide hit
'Blood moon'
'Blood moon': Lunar eclipse delights, at least where skies are clear
No longer alone
No longer alone: Lynnwood couple, 96 and 85, say it's never too late to wed