Crude Oil Up Due to Events in Egypt, U.S.
The unfolding events in Egypt where President Mohammad Morsi was ousted coupled with the improving unemployment numbers in the U.S. and the strengthening of the USD have pushed crude oil price to its highest in 14 months.
Job growth in the U.S for the month of June was at a level which was better than expected and after revision; also May’s jobless numbers were better than previously announced. At the same time news about a coup d’état in Egypt was raging on. At first markets were delighted, but revolutions are never a good thing in terms of stability of oil prices. Fear over further violence and upheaval pushed crude above $100 earlier this week.
There has been no news about the disruption regarding oil production, but oil, which is tied to the fluctuations of the US dollar, might resist further rises due to the strengthening dollar. In other words, oil might stay somewhat stable due to the diametrically opposing impact the upheaval in the Middle East and the strong dollar will have on oil.
The Egyptian military arranged a coup on Wednesday, toppling Egypt’s first freely elected president. Factions supporting the ousted leader protested in cities throughout the country on Friday. Thus far, harbours and distribution through the Suez Canal have been functioning as usual, according to reports.