Oil prices hit one-year high on Egypt worries

<p>The developing situation in Egypt has affected oil prices.</p>

Oil prices have hit their highest point in more than one year as concerns over the ongoing political instability in Egypt continue to have an impact on the value of the commodity.

The price of US light crude oil hit a 14-month high by growing $1.64 to $101.2 (£66.30) a barrel, while there were also strong gains for Brent crude, which rose 1.76 per cent to $105.76.

Rising demand for oil has also resulted in the price going up, with the US Energy Department revealing that US crude supplies have fallen by 10.3 million barrels.

The Suez Canal Authority has suggested that the turmoil in Egypt is not going to have an impact on the supply of oil on the canal.

Around two per cent of the world's oil supply is transported down the Suez Canal every day, but the body said it "has all the authorities needed for running the Canal without being limited by the laws and the systems of the [Egyptian] government".

Oil rose to over $100 a barrel earlier in the week and it seems likely its value will continue to rise amid concerns over the future of Egypt.

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