Adam Shell and Kim Hjelmgaard
July 4, 2013
The price of crude oil traded above $102 a barrel Wednesday — highest level in over a year â€” as embattled Egyptian President Mohammed Morsi vowed not to yield to demands of millions of protesters that he resign immediately.
As the stock market closed a shortened July Fourth holiday trading session, the price of crude oil hit was trading at $101.22 barrel, up $1.62, up about 1.6% for the day. The benchmark crude oil contract for August delivery traded on the New York Mercantile Exchange gained $1.61 to close at $99.60 a barrel Tuesday.
The political crisis in Egypt is not only causing heightened uncertainty in markets, but it is also raising fears that oil prices could spike if the crisis leads to a supply disruption if the all-important Suez Canal suffers a blockage or bottleneck, says Don Rissmiller, an economist at Strategas Research Partners.