Friday, 28 Jan 2011

Crude Oil Soars To $89.65 a Barrel on Concern Unrest in Egypt Will Spread

Crude oil saw its highest daily gains since September 2009 today, and reached as high as $89.65 a barrel. Crude began today's trading session near $85.00 a barrel, and saw a daily surge of 460 pips. Crude oil is currently trading near $89.35 a barrel.

Crude oil prices surged on Friday after anti-government protests intensified in Egypt. The protests have spurred fears that the unrest will spread to major oil-producing parts of the Middle East, and as a result might damage oil supplies in the region. Egyptian President Hosni Mubarak declared a curfew in Cairo, Alexandria and Suez as a result. Gold prices have also surged in response to the Egyptian unrest, and gold is currently trading near $1,340 an ounce.

Looking ahead to the following week, traders are advised to follow all updates regarding the protests in Egypt, as these are like play a leading role in oil trading. If the protests continue, not to say spread to oil-producing countries, crude prices have potential to climb further.