Oil Near 10-Week Low as Mubarak Resignation Eases Suez Concern

Oil traded near the lowest in more than 10 weeks after Egyptian President Hosni Mubarakstepped down and handed power to the military, reducing concern that crude shipments from the Middle East will be disrupted.

Futures slipped 1.3 percent on Feb. 11 after Vice President Omar Suleiman made the announcement on state television. Oil in New York rose to a two-year high last month on bets supply through Egypt’s Suez Canal may be interrupted and unrest may spread to other parts of the Middle East.

“The market will now focus its thinking away from Egypt,” said Jonathan Barratt, managing director of Commodity Broking Services Pty in Sydney. “It’s back to inventories and the economic numbers this week.” An Energy Department report last week showed U.S. crude stockpiles rose for a fourth week in the seven days ending Feb. 4.

Crude for March delivery was at $85.76 a barrel, up 18 cents, in electronic trading on the New York Mercantile Exchange at 2:15 p.m. Sydney time. The contract declined $1.15 to $85.58 on Feb. 11, the lowest since Nov. 30. Prices slid 3.9 percent last week and are 15 percent higher than a year ago.

Brent crude for April settlement climbed 72 cents, or 0.7 percent, to $101.66 a barrel on the ICE Futures Europe exchange in London. The March contract gained 0.6 percent to $101.43 on Feb. 11, when it expired.

Egypt’s ruling army council yesterday dissolved parliament and suspended the constitution following the ouster of President Mubarak, saying it will rule for six months or until general elections take place.

(Source: http://www.bloomberg.com/news/2011-02-13/oil-trades-near-10-week-low-after-mubarak-hands-power-to-egypt-s-military.html)