M&C comments on price increase of Brent crude oil

The price of Brent crude oil has hit $100 (£62.87) a barrel for the first time since October 2008 and David Hunter, an analyst from UK-based purchaser of energy M&C, has commented: ‘All traders needed was a specific reason and the spreading of North African political unrest towards the Middle East has been the catalyst.

‘There are concerns over possible disruption to supply from the Gulf states, particularly via Egypt’s Suez canal, which sees as many as four million barrels pass through each day by tanker or pipeline.

‘Although unlikely, should this vital supply route be cut there would be major implications for European supply of oil and potentially liquefied natural gas.

‘In recent weeks we have seen prices at the pump head climbing towards record levels in the UK and the effects of the $30 gain in oil prices since the summer are being felt in the wallets of already stretched British consumers.’