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31 January 2011
Last updated at 11:45 ET
The price of Brent crude oil has hit $100 a barrel for the first time since October 2008 on concerns about the political unrest in Egypt.
Brent rose 65 cents to $100.07 a barrel in afternoon trading.
Oil prices had risen earlier in the day on fears that protests could lead to the closure of the Suez Canal and disrupt oil supplies.
They fell back temporarily when the head of producers' group Opec said he did not expect Suez to be affected.
And a canal official said that the waterway was running at full capacity.
Brent oil has steadily climbed since August when it was just over $70 a barrel as the economic recovery has lifted global demand.
"Traders are buying dips on fears that things could escalate further in the Middle East and spread to other countries," said Tom Bentz, a broker at BNP Paribas in New York.
"Everything is still moving and there is no loss of shipping. But there are still concerns - nothing has gone away."
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Brent rose 65 cents to $100.07 a barrel in afternoon trading.
Oil prices had risen earlier in the day on fears that protests could lead to the closure of the Suez Canal and disrupt oil supplies.
They fell back temporarily when the head of producers' group Opec said he did not expect Suez to be affected.
And a canal official said that the waterway was running at full capacity.
Brent oil has steadily climbed since August when it was just over $70 a barrel as the economic recovery has lifted global demand.
"Traders are buying dips on fears that things could escalate further in the Middle East and spread to other countries," said Tom Bentz, a broker at BNP Paribas in New York.
"Everything is still moving and there is no loss of shipping. But there are still concerns - nothing has gone away."
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