Oil slips from 2-year high as Suez route stays open
01 Feb 2011
Oil dropped from a two-year high as concern eased that supplies through the Suez Canal might be disrupted by unrest in Egypt. Brent crude traded at more than $100 a barrel for a second day.
Futures fell as much as 1.1 per cent, trimming a two-day gain after Suez Canal officials said traffic is moving normally through the main artery for more than 2.2 million barrels of oil a day. A US government report due on Wednesday may show stockpiles grew for a third week, according to a Bloomberg News survey.
Oil for March delivery on the New York Mercantile Exchange dropped as much as $1.03 to $91.16 a barrel and was at $91.30 a barrel at 1:44 p.m. London time. Yesterday it reached $92.19, the highest settlement since 3 October 2008.
January futures rose 0.9 per cent. Brent for March settlement fell as much as 82 cents, or 0.8 per cent, to $100.19 a barrel on the ICE Futures Europe exchange in London. It rose to $101.73 on Monday, the highest price since 29 September 2008.
Futures in New York rose 3.2 per cent on Monday as opposition groups demanding Egyptian president Hosni Mubarak's ouster urged more people onto the streets.
About 2.5 per cent of global oil production moves through Egypt via the Suez Canal and the adjacent Suez-Mediterranean Pipeline, according to Goldman Sachs Group Inc.
