Egypt riots force petrol price rises
PETROL prices will continue to shoot up as the price of crude oil hit over $101 (€73.50) per barrel due to concerns about unrest in Egypt.
Traders are concerned that the civil disruption in Egypt could disrupt the flow of oil through the Suez Canal on its way to the west.
About one million barrels of oil pass each day through the Suez Canal, a key transit route for shipments from the Persian Gulf region.
The price hit $101 for the first time since October 2008.
The deputy head of the International Energy Agency, Richard Jones, warned that political unrest in North Africa and the Middle East was a 'key' uncertainty hanging over oil markets.
Leo Drollas, Chief Economist Centre of Global Studies, said that the combination of a severe winter and a reduction in supply was causing the increase.
"Egypt is not a major oil producer but it holds a very important geographical position," he said.
"Also there is potential that this unrest will affect more oil-producing nations in the area -- people are worried about what might happen further into the middle east and into Libya."
Mr Drollas anticipates that the cost will continue to rise gently, possibly picking up pace as demand continues to be strong.
"It's a question of supply," he said.
And he said that it could rise to as much as levels seen in 2008.