OPEC to boost output on oil supply disruption
02 Feb 2011
Oil was down from a two-year high yesterday, as concerns following the unrest in Egypt hitting supplies through the Suez Canal eased. Brent crude ruled over $100 a barrel for a second day.
Futures cut two days of gains after Suez Canal officials said traffic movement through the main artery was normal for more than 2.2 million barrels of oil a day.
According to a Bloomberg News Survey, a US government report tomorrow may show stockpiles swelled for a third week.
Analysts say the escalating violence in Suez had seen no specific targeting of shipping facilities or passing ships and no significant threat to major producing nations is expected barring Algeria.
Egypt has deployed troops to help protect the strategic SuMed pipeline an official said today. Egyptian president Hosni Mubarak has meanwhile offered dialogue with an opposition movement that aims to oust him from office.
The Organisation of Petroleum Exporting Countries (OPEC) has meanwhile assured it would increase output if the unrest in Egypt were to disrupt supplies from the Middle East.
