Oil prices today were supported on international markets by heightened concerns over supply due to reduced Libyan exports and violent protests in Egypt.
On the London market, the price of a barrel of crude oil slightly increased to $110.5. On the American market, a barrel was traded at a price 20 cents lower, at $107.26.
Libyan oil production and exports have significantly decreased due to unrest and strikes. Exports have fallen to the lowest level since the civil war in 2011, although the largest refinery has resumed exporting some oil derivatives.
Unrest in Egypt fuels fears for oil transit through the Suez Canal. Egypt is not a major oil producer, but investors are concerned about the spread of unrest to neighboring countries in the region.
“The bloodshed and unrest in Egypt and the damaged oil supply from Libya support oil prices,” said Carsten Fritsch from Frankfurt’s Commerzbank.
Investors are also looking for signals on when the U.S. central bank will begin to reduce the stimulus program that has supported asset prices, such as oil, over the past three years. The minutes from the last meeting of the U.S. central bank, which will be released on Wednesday, could provide some indications about the start of tapering the program, which could encourage a strengthening of the dollar.
Meanwhile, the Organization of the Petroleum Exporting Countries (OPEC) announced today on its website that the price of a barrel of its reference basket of oil was $107.8 on Friday, which means it was slightly lower than the previous trading day.
