Egyptian protesters throw rocks at security forces during the clearing of one of the two sit-ins near Rabaa Adawiya mosque, Cairo Photo: EPA/MOSAAB ELSHAMY
Singapore (AFP) — Oil prices rose in Asia on Friday, supported by concern about turmoil in Egypt after a crackdown on protesters killed nearly 600 people nationwide, analysts said.
Investors are closely watching whether the latest unrest in Egypt will escalate and affect stability in the oil-rich and politically volatile Middle East region.
New York’s main contract, West Texas Intermediate for delivery in September, was up 16c at $107.49 a barrel in afternoon trade.
Brent North Sea crude for October delivery was up 20c at $109.80.
“Oil prices advanced … on worries that escalating violence in Egypt could affect the oil shipment along Suez Canal or spread across the Middle East, where supplies already face disruptions,” Phillip Futures investment analyst Lee Chen Hoay said in Singapore.
CMC Markets chief market strategist Michael McCarthy said in Sydney that oil prices already included a “risk premium” as investors grew accustomed to constant threats of a disruption in Middle East supply.
“Egypt is clearly having an impact on prices, but the reality is constant talk of a Middle East supply disruption has almost become background noise for investors,” he said.
Islamists in Egypt have called for a “Friday of anger” in Cairo after the nationwide death toll following a crackdown against supporters of ousted President Mohamed Mursi on Wednesday rose to 578, making it the country’s bloodiest day in decades.
The call raised fear of fresh violence amid renewed attacks on security forces on Thursday.
Traders are worried the unrest could hit crude shipments through the Suez Canal and Sumed Pipeline, which provide a link between Europe and oil producers in the Gulf.
Although Egypt is not a major oil producer, the Suez canal carries about 2.5-million barrels daily, about 2.7% of global supply.
