Chaos in Egypt leads to hike in crude oil prices

NEW DELHI: The chaos in Egypt has led to an increase in the prices of crude oil around the world. The price of crude oil has already shot up to $100 per barrel. The situation in Egypt may also hamper the transfer of oil through the Suez Canal.

The prices came down to $98.95 after the chief of Organization of Petroleum Exporting Counties (OPEC) declared that the oil requirements will be met even if the violence in Egypt disrupts the supply of oil. The rising of the prices up to $100 per barrel showed that in case the scenario in Egypt becomes worse, then the transportation of oil through the Suez Canal will be disturbed.

"The greater fear is that the (Egypt) turmoil could spread to other Middle East countries, including even Saudi Arabia. If that happens, then all bets on oil prices are off," said, Sharon Zollner, Senior economist, Australia and New Zealand Bank.