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.
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