Tuesday, 1 February 2011

Oil price tops 100 dollars a barrel

Brent crude oil prices broke the 100 US dollar (£62.3) a barrel mark for the first time in more than two years following fears that the civil unrest in Egypt would block the Suez Canal.

The price of crude on the futures market rose 63 cents on Monday as prices hit 100.05 US dollars - the highest future price for Brent crude since October 2008.

Oil prices have already risen by more than 15% in 2010 and experts warned that prices of 110 US dollars (£68.5) are not far away as the weak US dollar and high demand continue to push up prices.

Analysts said gas prices will follow oil upwards, with this summer's day-ahead prices set to be 10% higher than at the same time last year.

Emma Pinnock, an analyst at Inenco, said: "The situation in Egypt has caused the market to worry about the flow of oil in the Middle East.


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