The biggest threat currently seen in commodity markets is the risk of a disruption of the safe passage of crude oil and products through the Suez canal and the Suez - Mediterranean pipeline. Some 4.5 million barrels per day is transported via these two channels into the Mediterranean and beyond. With Egypt not being a producer a potential disruption should only have a temporary impact as oil will eventually find its way south around Africa. This will obviously cause some delays and during this time prices may rise.
Tuesday 20, August 2013 by Ole Hansen