Oil prices rising soaring to $120 per barrel Middle East concern

At the same time, light crude sweet from NYC in April, known as West Texas Intermediate (WTI), rose to $103.41, a level last seen in late September 2008.

"Oil prices continued to surge higher Libya events dominated headlines and the oil market", said Westhouse Securities analyst Dave Hart.

"Leaving the country of high-quality crude is being significantly affected due to the exodus of foreign personnel."

Brent jumped high $119.79 per barrel at the beginning Thursday, return to approximately $113.53 through the middle of the morning. NY crude was higher at $100.72 $2.67 per barrel.

The King of Saudi Arabia last night announced $36bn (£ 22bn) additional benefits for his people to try to stop the wave of uprisings Arab extends to largest exporter of oil in the world.

Market analysts warns also Brent crude could hit $220 per barrel.

Nomura said oil prices products team is likely to unexplored highs of storage for the next few weeks if political unrest spreads in Algeria, reduction in capacity of world reserve margins thin light just before the first Gulf war.

Prices on the part of the world and copper fell for the fourth consecutive day, as investors reduce their exposure to risk while the sanctuary of gold, Swiss francs and US Government bond pink price.

Disturbance arising from the revolt in the global exporter No. 12 Libya cut at least 400,000 barrels per day (BPD) output bpd countries 1.6 m, according to Reuters calculations.

Soaring oil prices threatens to put an end to the recovery in advanced economies and add other inflationary pressures in booming emerging markets.

According to UBS, an increase of $10 of oil prices will shave 0.3 percentage point by global growth.

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Portugal succeeds in the sale of bonds in the middle of the pressure of rescue

The Portugal is under pressure to follow the Ireland and the Greece and accept a rescue. Photo: AP

The country has managed to sell 650 m € for bonds due in 2014 and 599 million euros of bonds in 2020.

Performance or price investors Portugal load hanging on its debt, debt short term was 5 396pc higher than 4pc investors look for in a binding October sale.

However the Portugal performance closely-watched 10 year bond was slightly lower at 6 716pc today compared to 6 806pc in a November auction.

The Portugal government debt agency said demand for bonds, claiming that he could sell more than double the €1 billion - value it offered.

The yield of bonds to 10 years in the Portugal was negotiated under FP7 autour these days, a cost of borrowing that some economists consider too high for the country to support.

Portugal faces a split between its political leaders, who insist the country does not require an EU rescue plan and the Monetary Fund International (IMF) to deal with its budget deficit, and help members of the Portuguese Central Bank supporting financial acceptor.

Leader of the Portugal Jose Socrates, says his Government has delivered on the promises of the EU, cutting the deficit of the budget less than 7 3pc 2010 goal.

"Portugal pas will require financial assistance for the simple reason that it is not necessary," he said yesterday.

Japan gave boost nations euro yesterday, saying it would buy bonds issued by financial assistance from EU funds to help restore stability in the region.

EU leaders are working on a "comprehensive" plan to contain the spread of the soveriegn debt crisis, European Commissioner Olli Rehn has written in the Financial Times today.

"Our most urgent priority is to break the vicious circle of unsustainable debt, financial turmoil and growth sub-optimal", he said.

He also called for the European Rescue Fund of €440bn "strengthened and broadened the scope of its activity.

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Oil rises to $104 per barrel in the middle of the Middle East tensions

Brent crude rose above $ 104 per barrel after Israel says two warships Iranian expected to navigate through the Suez canal in Syria road.  Photo: AP

Gross Brent rose above $ 104 per barrel later Wednesday and stay there Thursday after avigdor lieberman, Israeli Foreign Minister said two warships Iranians planned navigate through the Suez canal in Syria road.

Apart from the fresh tensions Israel-Iran oil traders concerned also stirring the Bahrain where the riot police killed demonstrators and the oil-rich Libya.

They fear the kind of disturbance that reverses the Presidents of the Egypt and the Tunisia could extend to other Middle East oil-producing nations.

"Trouble in the Middle East are on the agenda of events at Bahrain and Saudi have placed in barrels of political tensions, said Rob Montefusco, a financial Sucden oil trader."

Ken Hasegawa, Manager of Newedge broker Japan, derivatives says oil could easily hits $105 today, according to economic data out of the United States later.

Mr. Lieberman called the move later "provocation" by the Iran whose Israel sees a significant threat to nuclear weapons program OPEC nation.

However, the Suez Canal by the Egypt Authority said today was "informed of the cancellation of two regular journeys of two Iranian warships.

Channel, official who refused to be named, "no new date has been set to cross the Suez in convoy south from the Red Sea", told Reuters.

Military vessels passing through the channel must first obtain permission from the Ministry of defence and the Ministry of Foreign Affairs.

The official identified vessels like Alvand and Kharg Island, said that ships were near the port of Jeddah, Saudi Arabia Red Sea. Shipping experts said that the Alvand frigate Kharg refueller.

Last time, Iranian warships crossed the channel is in 1979.

In January, disorders in Egypt helped push Brent over $ 100 per barrel. The last approach by Iran between five days after the Egyptian President Hosni Mubarak resigned and Israeli leaders have expressed concerns that the Iran may operate the transition period.

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Retrieve the markets of the Middle East on optimism the Egypt

Investors set aside concerns that violent demonstrations in the State of the gas-rich Algeria and other events at the Yemen could destabilize the region, or in any way threaten the oil reserves.

Stock Exchange remains the Egypt closed and will reopen this week with margins, but companies with large Egyptian interests que se aligned on other exchanges. Dana Dhabi gas jumped 4 5pc, whereas Air Arabia and group telecom Etisalat the two 0 9pc pink. EGX 100 index the Egypt fell 27pc more than two weeks before the Exchange was closed on January 30, but seems ready for a rebound.

Lars Christensen, head of emerging markets at Danske Bank, said invest in shares MIDEST is similar to European assets purchase is after the fall of the Berlin wall and could be rewarded for time if more open societies unleash economic potential. "We are very positive: the way things are playing is on the more positive point possible scenario." There is no civil war in Egypt and no hostile actions against other countries. »

Mr. Christensen, said the Egypt and the Tunisia are "star artists" in economic terms before their revolutions and should seek there where they left. "Our one of the concerns are that leaders across the region trying to buy their people instead of opening with reform", he says. Jordan has raised grants for food and Bahrain, where a Sunni elite governs the Shiite majority, is to give each family a bonus of £ 1,650 for food.

The Egypt managed to increase the $1 billion market debt Sunday but rigid price pay 11 68pc for 9 months invoices. Credit default swaps on the last Egypt debt traded at 322 points, below Hungary, the Portugal, Ireland or the Greece.

Finance Minister Egypt Samir Radwan, stated that the country is considering financial boost to restart growth, even though the budget deficit may hit 10pc of GDP this year, against 7 9pc initial estimates. He said "There is a need a recovery plan that is very closely linked to employment".

Mr Radwan said losses of agitation reached $6 MD, largely caused by tourist flight. Growth will drop to 5 8pc slot 4pc in 2011. The Egypt must create 700,000 jobs per year to absorb a "youth bulge" entering the labour market.

The main causes of the revolt in Egypt and Tunisia was new wealth is enriched elite but did not follow relatively quickly to the rest of the country, validating once more the theory of Tocqueville revolutions occur because increasing prosperity is biased, rather than because of poverty.

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Retrieve the markets of the Middle East on optimism the Egypt

Investors set aside concerns that violent demonstrations in the State of the gas-rich Algeria and other events at the Yemen could destabilize the region, or in any way threaten the oil reserves.

Stock Exchange remains the Egypt closed and will reopen this week with margins, but companies with large Egyptian interests que se aligned on other exchanges. Dana Dhabi gas jumped 4 5pc, whereas Air Arabia and group telecom Etisalat the two 0 9pc pink. EGX 100 index the Egypt fell 27pc more than two weeks before the Exchange was closed on January 30, but seems ready for a rebound.

Lars Christensen, head of emerging markets at Danske Bank, said invest in shares MIDEST is similar to European assets purchase is after the fall of the Berlin wall and could be rewarded for time if more open societies unleash economic potential. "We are very positive: the way things are playing is on the more positive point possible scenario." There is no civil war in Egypt and no hostile actions against other countries. »

Mr. Christensen, said the Egypt and the Tunisia are "star artists" in economic terms before their revolutions and should seek there where they left. "Our one of the concerns are that leaders across the region trying to buy their people instead of opening with reform", he says. Jordan has raised grants for food and Bahrain, where a Sunni elite governs the Shiite majority, is to give each family a bonus of £ 1,650 for food.

The Egypt managed to increase the $1 billion market debt Sunday but rigid price pay 11 68pc for 9 months invoices. Credit default swaps on the last Egypt debt traded at 322 points, below Hungary, the Portugal, Ireland or the Greece.

Finance Minister Egypt Samir Radwan, stated that the country is considering financial boost to restart growth, even though the budget deficit may hit 10pc of GDP this year, against 7 9pc initial estimates. He said "There is a need a recovery plan that is very closely linked to employment".

Mr Radwan said losses of agitation reached $6 MD, largely caused by tourist flight. Growth will drop to 5 8pc slot 4pc in 2011. The Egypt must create 700,000 jobs per year to absorb a "youth bulge" entering the labour market.

The main causes of the revolt in Egypt and Tunisia was new wealth is enriched elite but did not follow relatively quickly to the rest of the country, validating once more the theory of Tocqueville revolutions occur because increasing prosperity is biased, rather than because of poverty.

Get free advice on investments maximize with Telegraph wealth management Service

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Saudi sovereign offers $36bn deals uprising in the middle of the admonition of oil prices could double.

Growing unrest in the region led experts to warn yesterday evening Brent crude oil prices may double to $111 a barrel mark it culminated yesterday if the crisis continues to spread to other countries in the Middle East.

Team products said Nomura to oil price risk storage in unexplored peaks in the coming weeks if chaos strikes Algeria Similarly, reduce the ability of world reserve thin margins because just before the first Gulf war.

Wednesday, Brent crude rose more than 5MC almost $ 112 a barrel, threat levels that could derail the global economy. It closed at $111.25.

"We could see $220 per barrel should Libya and in Algeria halt oil production." We may be underestimating this speculative activities were largely not present in 1990-1991 ", said Michael Lo, strategist, Bank oil."

The warning came ENI Italy announced the suspension of supplies by the Libya pipeline and a string of foreign companies have been evacuated staff and stop production. Libya holds oil large de l'Afrique reserves and produces 1.6 m barrels per day (b/d), mainly for export to Europe.

German driller Winthershall stopped its production of 100,000 b/d in Libya, whereas ENI is stopped at a string of sites, considerably reducing the flow of 550 b/d. A number of producers have declared "force majeure".

Barclays Capital said 1 m barrels of Libyan output is "locked in", with the other 0.6 m at risk. While Saudi Arabia may respond by raising the output, it takes time and its oil is not a substitute for "Sweet Crude the Libya".

The crisis escalating triggered falls more on the global stock exchanges. Wall Street was down 1pc in trade at the beginning and the FTSE 100 1. 2pc. The Dow Jones index has shed more than 300 points during the three days of 12,075.

Nomura said a closure in Libya and Algeria would reduce global 2.9 m b/d supply and reduce the ability of spare OPEC b/2.1 m d, comparable to levels at the beginning of the Gulf war and worse than during the 2008 spike when prices hit $147.

Two price shocks preceded by - or triggered - a recession in Europe and the United States. Fatih Birol, Chief Economist, International Energy Agency said the last rising already become prices a "serious risk" for the fragile economies of OECD block.

Some analysts fear the underlying image is worse than officially recognized doubting Saudi claims of alternative ample capacity. Wikileaks cable cited comments by geologist of Saudi Aramco oil giant that Kingdom reserves had been exaggerated by 40pc. A second cable cited U.S. diplomats asking if the Saudis "more empowered to make prices downwards for an extended period."

Report from Nomura, who consider the scenario catastrophic to a real crisis in the Gulf, said recent oil price shocks have shown a pattern of three floors, with a final blow-off price in the final phase. The current crisis is the first step.

Soaring oil prices create a dilemma for banks, nasty because they inflationary if caused by the robust global growth, but the deflationist if caused by a tightening of supply which acts as a tax on consumption of nations. Big oil exporters tend to save additional revenues for first price spikes, so the initial effect is draining global demand.

The current image contains elements of both, with an extra touch of liquidity created by the US Federal Reserve leaking into the global system and play havoc with commodity prices.

Secretary of the Treasury Tim Geithner told us Wednesday that the global economy is relatively stong to "manage" the oil shock, insisting on the fact that central banks "have extensive experience in the management of these things."

The European Central Bank (ECB) responded to skyrocketing oil in July 2008 by raising rates even if the Germany and the Italy were in recession at that time there. Nout Wellink, the Governor of Dutch of the ECB, said that this was an error policy.

Circumstances are different this time still also dark. ECB chief Jean-Claude Trichet scored last month that the Bank will be "look at" the hump of prices in the short term, but the ECB rhetoric has since then harden. Fed doves will probably give more weight to the deflationary risks.

Jeremy Leggett, a leader of the task force industry UK peak oil and energy security, says the crisis Mid-East "shows the extreme fragility of the world system." People don't realize the proximity we a potential jump if that agitation reached critical mass in OPEC countries enough. "Governments must develop contingency plans and get cracking on proactive steps while we still have time", he says.

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Stocks suffer from disorders of the Middle East?

Airline investors were already concerned about rising prey Libya protests before oil prices. Photo: REUTERS

In London, shares of business travel, defence and mining stocks were among slaughterers more marked.

International Consolidated Airlines Group (AIG), the newly merged British Airways and Iberia, has suffered a heavy fall, slide 3 3pc, rising costs of fuel oil prices climbed investors worried.

Tuesday, prices of oil reaches $108 per barrel as Libyan production was plagued by violent demonstrations and concerns grew up Middle East and North Africa crude-producing strategic region on propagation of disturbances.

Airline investors were already concerned about rising prey Libya protests before oil prices. Earlier this month, AIG said it would increase its fuel surcharge on long distance services to account for "substantial continuous increase" of oil prices

But analysts at Investec stated that "given the uncertain economic environment, we are cautious on the ability of airlines to retrieve cost increases through fuel supplements".

AIG was also hit by concerns that the crisis in the Arab world to increase travel and tourism - a concern that took havoc tui travel. Most large tour operator Europe fell 2 FP6 and midcap Thomas Cook throw a 5pc 3. Panmure Gordon analysts cut their ratings on Thomas Cook to "hold", saying:

"We have reduced our forecast of revenues by sharing 2011 6 FP7 to fully reflect the impact c £ 20 m of political agitation in Tunisia and guided Egypt to branch in the first quarter interim management statement."

"We believe that the economic and geopolitical context will remain negative and negative impact on sentiment towards operators".

Agitation in Libya also took havoc on minors, that prices for industrial metals hanging. Investors were outgoing long positions in assets closely focused on the economic recovery that cloud the Outlook for demand political concerns.

Rio tinto hangar 0. 9pc and Kazakhmys falls 1. FP7 on Tuesday. However gold has retained its status as safe haven and African Barrick Gold edged up 0 4pc.

Even if oil prices were surging, energy stocks withdrew the fears over their exposure to the troubled region. BP fell 1pc, while its European peers Total and Repsol declined around 1pc and 1. FP7 respectively.

Royal dutch shell, which Tuesday, said that all expatriate employees and their relatives in Libya had been relocated, Tomb 1pc.

While pharmaceutical companies are often considered to be defensive, mid-cap stocks hikma Pharmaceuticals took a fall.

Jordan-based drug manufacturer has 2 investors 9pc concerned of his exhibition in the Middle East. Since one month, its price share came under pressure as unrest across the Egypt and Tunisia hit a sense.

However, some analysts remained relatively optimistic. Earlier this month retained Morgan Stanley analysts "hold them" rating on Hikma, saying:

"Fluid developments across the Tunisia, Egypt and Jordan (8pc 10pc of sales) are a blow to sentiment, even if we do not anticipate a change in long-term structural growth for pharmaceutical markets history throughout the region.

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Events of the Middle East: market rection

Escalating tensions in the Middle East have frightened markets. Photo: AFP

Charlie Robertson, Chief Economist world, capital of the Renaissance:

"Events and the bloodshed in rich nations - such as Libya and Bahrain - suggest disorders can spread even more deeply in oil production, such as Iran, the Algeria or nations more worrying for the markets, Saudi Arabia."

Rising prices for oil and gold yesterday are responses of rational market this uncertainty and Russia - with exposed both - equities should do well. In Ghana, the Kazakhstan and Nigeria are likely beneficiaries too, although it is frontier markets.

"Safe haven currencies, such as the franc Switzerland (vs Euro) and the yen would normally well in this environment, but the two are already expensive." Norwegian kroner (versus the Euro) is probably the most obvious beneficiary of this uncertainty, held its exports of petroleum and distance from the Middle East.

On the other hand, the Turkey perhaps suffer, given its dependence on oil and regional proximity... and as the Turkish Lira is now relatively good market in the short, we need to see Central Bank intervention to reduce volatility.

Jim Reid, strategist, Deutsche Bank:

"Libya has the largest reserves of oil in Africa and the ninth largest worldwide political instability naturally is a source of concern regarding prices and production volumes.

Joshua Raymond, market strategist, city Index:

The reaction of markets is one of uncertainty on how to play the situation in the Middle East and what will be the consequences for crude oil supplies.

"Spikes in crude oil are likely inflated costs for society, particularly airlines and as these margins of pressurized." Investors are afraid now that the Libya disorders and other nations in the region could affect profits of corporations, at least in the short term.

"FTSE 100 exchanged by 5950 support levels today and should the UK Index close below that level today, it can open more downside pressure levels of support 5824 next."

Simon Denham, head of the capital spreads

"FTSE is slot pressure this morning in the area of 5950 medium with what is quite a level of support important."

"The speed with which nine is to sell investors disconcerting and this can easily be transformed into a panic, causing a move significant downward as the index has already pas take into account levels of support."

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Middle East markets recover on Egypt's optimism

Investors brushed aside concerns that violent protests in the gas-rich state of Algeria and further demonstrations in Yemen could destabilise the region, or in any way threaten oil supplies.

Egypt’s bourse remains shut and will reopen this week with curbs, but companies with large Egyptian interests rallied on other exchanges. Au Dhabi Dana Gas jumped 4.5pc, while Air Arabia and the telecom group Etisalat both rose 0.9pc. Egypt’s EGX 100 index fell 27pc over two weeks before the exchange was closed on January 30 but appears poised for a rebound.

Lars Christensen, emerging markets chief at Danske Bank, said investing in Mid-east shares was akin to buying East European assets after the fall of the Berlin Wall, and might be well rewarded over time if more open societies unleash economic potential. “We’re very positive: the way things are playing out is just about the most positive scenario possible. There has been no civil war in Egypt, and no hostile gestures towards other countries.”

Mr Christensen said Egypt and Tunisia were “star performers” in economic terms before their revolutions and should pick up where they left off. “Our one concern is that rulers across the region try to buy off their people instead of opening up with reforms,” he said. Jordan has raised food subsidies and Bahrain, where a Sunni elite governs a Shia majority, is giving each family a £1,650 bonus for food.

Egypt succeeded in raising $1.1bn on the debt market on Sunday but at stiff cost, paying 11.68pc for 9-month bills. Credit default swaps on Egypt’s debt last traded at 322 points, below Hungary, Portugal, Ireland or Greece.

Egypt’s finance minister Samir Radwan said the country is eyeing a fiscal boost to revive growth even though the budget deficit may hit 10pc of GDP this year, against initial estimates of 7.9pc. “There is a need for a stimulus package that is very closely related to employment,” he said.

Mr Radwan said losses from the turmoil had reached $6.2bn, much of it caused by tourist flight. Growth will drop from 5.8pc to under 4pc in 2011. Egypt must create 700,000 jobs a year to absorb a “youth bulge” entering the workforce.

A key cause of the uprisings in Egypt and Tunisia was that new wealth had enriched an elite but had not trickled down fast enough to the rest of the country, validating once again the Tocqueville theory that revolutions occur because rising prosperity is skewed, rather than because of poverty.

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Middle East markets recover on Egypt's optimism

Investors brushed aside concerns that violent protests in the gas-rich state of Algeria and further demonstrations in Yemen could destabilise the region, or in any way threaten oil supplies.

Egypt’s bourse remains shut and will reopen this week with curbs, but companies with large Egyptian interests rallied on other exchanges. Au Dhabi Dana Gas jumped 4.5pc, while Air Arabia and the telecom group Etisalat both rose 0.9pc. Egypt’s EGX 100 index fell 27pc over two weeks before the exchange was closed on January 30 but appears poised for a rebound.

Lars Christensen, emerging markets chief at Danske Bank, said investing in Mid-east shares was akin to buying East European assets after the fall of the Berlin Wall, and might be well rewarded over time if more open societies unleash economic potential. “We’re very positive: the way things are playing out is just about the most positive scenario possible. There has been no civil war in Egypt, and no hostile gestures towards other countries.”

Mr Christensen said Egypt and Tunisia were “star performers” in economic terms before their revolutions and should pick up where they left off. “Our one concern is that rulers across the region try to buy off their people instead of opening up with reforms,” he said. Jordan has raised food subsidies and Bahrain, where a Sunni elite governs a Shia majority, is giving each family a £1,650 bonus for food.

Egypt succeeded in raising $1.1bn on the debt market on Sunday but at stiff cost, paying 11.68pc for 9-month bills. Credit default swaps on Egypt’s debt last traded at 322 points, below Hungary, Portugal, Ireland or Greece.

Egypt’s finance minister Samir Radwan said the country is eyeing a fiscal boost to revive growth even though the budget deficit may hit 10pc of GDP this year, against initial estimates of 7.9pc. “There is a need for a stimulus package that is very closely related to employment,” he said.

Mr Radwan said losses from the turmoil had reached $6.2bn, much of it caused by tourist flight. Growth will drop from 5.8pc to under 4pc in 2011. Egypt must create 700,000 jobs a year to absorb a “youth bulge” entering the workforce.

A key cause of the uprisings in Egypt and Tunisia was that new wealth had enriched an elite but had not trickled down fast enough to the rest of the country, validating once again the Tocqueville theory that revolutions occur because rising prosperity is skewed, rather than because of poverty.

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