Black Rock says that the trouble in Egypt shouldn’t hamper the stock or bond market or cause long-term oil price increase.
Oil: A week of street protests in Egypt led to spikes in oil prices, approaching $100 a barrel, amid concern that the Suez Canal might be closed. While Egypt is not a major oil producer, it controls the Canal, which carries 1.8 million barrels of oil per day. The Sumed pipeline, which runs through Egypt, carries 1.1 million barrels per day. But Black Rock points to 5.5 million barrels of spare oil capacity OPEC could bring to market to counteract any shortages because of transportation problems through Egypt.
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