Tuesday 20, August 2013 by Ole Hansen

Egypt and commodities

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.