Egyptian Civil Strife Sends Oil Close To $100 On Suez Canal Fears Jan 28, 2011 The situation could have ripple effects worldwide if the Suez Canal becomes jeopardized or even shut down. According to Canaccord Genuity, "this may be impactful as approximately 1.8 million bb/d of oil was transported through the Suez Canal in 2009. A closure of the canal would result in an extra 6,000 miles of travel for any oil being transported out of the region, an additional cost which could drive up oil prices."

1.What is happening in Egypt?

2.According to the excerpt,what is the fear the Suez Canal choke point

3.What impact can conflict in Egypt and the Suez Canal have on oil

What was happening in Egypt was that civilian protests created civil strife which affected the price of oil. The price of oil reached $100 due to Suez Canal Fears on Jan 28, 2011.

Egyptian people were protesting against dictator Husni Mubarak that was reaching his 30-year rule over Egypt.

2.According to the excerpt, what is the fear of the Suez Canal choke point?

The situation could have ripple effects worldwide if the Suez Canal becomes jeopardized or even shut down.

Although Egypt was not a major producer of oil, it administers the Suez Canal. If the canal is blocked, cargo ships full of oil cannot cross Europe, the Middle East, and to different parts of the world.

3.What impact can conflict in Egypt and the Suez Canal have on oil?

It could scale up and could become an international crisis that would affect many countries.

The world´s operations were and are based on il. vehicles, airplanes, trucks, transportation systems, machines in factories, operates using oil. No oil means a worldwide energetic crisis.