The price of light crude oil has risen to more than $100 (£66) a barrel on the back of concerns over the ongoing political instability in Egypt.
President Mohammed Morsi rejected an army ultimatum last night and this has fuelled fears that the crisis in the country is no closer to coming to an end.
Speaking to BBC News, Victor Shum, vice-president at IHS Energy Insights, said: "The turmoil in Egypt has caused the market to inject some premium into oil futures."
Following comments made by Mr Morsi last night, US light crude rose by more than two per cent to $101.80 a barrel in Asian trade.
Thousands of people have been protesting in Tahrir Square in central Cairo to call for the Egyptian president to stand down.
Last month, it was announced that Russian state-owned company Rosneft is set to double its supply of oil to China after a new deal was agreed. It will last for 25 years and is worth a total of $270 billion.
Learn about the Asian markets and CFD trading at City Index
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.