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Entries in Suez Canal (1)

Monday
Jan312011

Analysts Fear Effect Egypt Protests Will Have on Oil Markets

Photo Courtesy - Getty Images(CAIRO) -- The uprising and political unrest in Egypt is already having economic affects around the world.

On Monday, analysts will watch to see if the stock market rebounds from Friday's 166-point drop, as the price of oil continues to rise.

Though Egypt doesn't produce much oil, it controls the Suez Canal and a major pipeline that exports two million barrels of oil from the Persian Gulf.  Oil industry analysts predict that in the worst case scenario the Suez Canal will shut down and revolt will spread throughout the Arab world, which could interrupt production.

"You start getting into a doomsday scenario, where you do get very high oil prices.  But you are going to see more than the price of oil affected.  You are going to see the world economy effected everywhere," Robin West, an oil industry analyst said.

West added that it is very unlikely the effects will be that widespread.  There may be short-term volatility, but whoever is in charge of Egypt will want to make money, so they will find a way to sell oil, he said. 

Copyright 2011 ABC News Radio







ABC News Radio