NEW YORK - The violence that has erupted in Egypt could have an impact on oil prices, the Wall Street Journal reports, as traders fear that supply routes could be disrupted or spread to neighboring states.
"Egypt isn't an important oil exporter, but both the Suez Canal and Sumed pipeline are key transit routes from the Middle East to markets in Europe...While unrest hasn't directly threatened canal or pipeline operations, oil markets are concerned that instability could spread throughout the region, affecting major oil-producing nations," writes the Journal.
Edward Meir, an analyst with MF Global, commented: "The energy markets seem to be holding steady right now at relatively high levels while waiting for the drama to play out...Anything could happen in Egypt in a matter of hours, if not days."
The Journal notes that a string of winter storms has kept drivers off the roads and thus kept demand down; U.S. gasoline stockpiles increased by 5.2 billion barrels last week.
"We're not seeing gasoline numbers that strong this time of year. It could be weather related, but right now it's an interesting anomaly," Carl Larry, an analyst with Oil Outlooks and Opinions, told the Journal.
NACS released its 10th annual online fuels report yesterday, an online resource designed to address common consumer questions about the U.S. petroleum market, such as how crude oil prices affect gasoline prices at the pump.
NACS members are encouraged to share the online resources with media contacts and elected officials or via links on their home pages or social media sites, like Facebook or Twitter.