Geopolitical tension in the middle-east and expectation of rise in demand for crude oil in the US propped up oil prices in the international market to a one year high.
Crude for August delivery settled at $101.24 a barrel on the New York Mercantile Exchange at a recent trading session.
Tracking the most-active contracts, futures prices marked their highest settlement and first close above the key $100 level since May 2012, reports suggest.
Political crisis in Egypt and the ongoing civil war in Syria caused concerns about supply disruption of crude oil.
Market analysts expect oil prices to be quite volatile with upward bias until the situation in Egypt calms with a clear outlook for energy transportation routes.
The ongoing civil war in Syria remains a point of concern among energy traders because of Syria’s proximity to oil-rich Iraq.
Egyptian President Mohammed Morsi had rejected calls for his resignation — a year into his term as the country’s first democratically elected president.
Although Egypt itself is not a major oil producer, its geographic positioning (i.e. the Suez Canal) gives it control over some of the world’s most important oil routes, analysts opine.