Category: Money

With Egypt in Turmoil, Oil and Food Prices Climb

The turmoil in Egypt is causing economic jitters across the globe, pushing up food and oil prices so far, but bigger worries are ahead.
The unrest already has affected U.S. energy prices.

The average price for a gallon of regular gasoline in the U.S. was $3.12 on Friday – up 2.4 cents just in the past week. Analysts expect prices to stay above $3 a gallon – the highest since 2008 – and probably go higher until the conflict in Egypt is resolved and Mideast tensions ease.

Oil prices hovered at about $90 a barrel over the past week. Some analysts predicted the Egyptian crisis will lead to $100 per barrel prices sooner rather than later.
Traders worry the unrest might spread to oil-producing countries in the region and even affect shipments through the Suez Canal. Egypt is not a major oil producer, but it controls the canal and a nearby pipeline that together carry about 2 million barrels of oil a day from the Middle East to customers in Europe and the United States.