By Agency Reporter

Wednesday, 16 Feb 2011

Crude oil prices rose on Tuesday as protests in Middle East countries raised concerns about potential supply disruptions, while the United States dollar hit an eight-week high versus the yen as Treasury yields advanced.

World stocks were little changed, erasing early gains after a report showed United States retail sales rose less than expected in January, Reuters reported on Tuesday, adding that Wall Street stocks also fell at the open.

US crude for March delivery staged a rally as New York woke up, climbing as high as $85.97, rebounding from a 2-1/2-month low set in the previous session.

Last week’s ousting of Egyptian President, Hosni Mubarak and the toppling of his Tunisian counterpart, Zine al-Abidine Ben Ali, a month earlier, have raised tensions among investors that spreading unrest could disrupt oil supplies.

“We are seeing contagion from Tunisia and Egypt to other countries that are more important for the oil markets,” said Christophe Barret, oil analyst at Credit Agricole Corporate and Investment Bank.

World stocks as measured by MSCI were last little changed on the day, holding near last week’s 30-month highs. Japan’s Nikkei logged a 10-month closing high and Europe’s FTSEurofirst 300 was up by 0.1 per cent.

Source: Punch