Oil prices recovered today from Friday’s near 2% fall, which was attributed to the ongoing turmoil in Egypt and a fall in the US unemployment rate.
US crude for March rose 7¢ to stand at $89.10 a barrel at 10.56 EST, while ICE Brent increased by 43¢ to touch $100.26 a barrel, reports Reuters.
OPEC members said that oil prices could exceed $110 a barrel if the unrest in Egypt continued, while Venezuela’s forecast that oil prices may double to $200 if the Suez Canal is closed also contributed to the rise in prices.
According to analysts, traders are concerned about the chances of more unrest in Tunisia and Egypt triggering similar protests in the larger oil-producing nations of Libya and Saudi Arabia, which would lead to huge uncertainty over oil supplies.
The positive US jobs report, which revealed that the country’s unemployment rate fell to its lowest level since April 2009, also contributed to the price hike.