Oil prices hovered around $101 a barrel in London this evening after a rally sparked by port disruptions in Egypt, a weakening dollar and concerns about growing social unrest in north Africa.
Brent crude was up six cents at $101.09 a barrel, while US crude was down 74 cents at $91.46.
Shipping sources said there were major disruptions in Egypt's Alexandria and Damietta ports, pushing Brent swiftly past $101.
While Egypt is a minor player on oil markets, it controls two major transit points, the Suez canal and the Sumed pipeline that brings oil from the Red Sea to the Mediterranean. So far analysts and traders say supply disruptions along these routes are unlikely.
The International Energy Agency said the oil market did not face any emergency, but called on OPEC to remain 'flexible' in the event that contagion does spread and shortages begin to show.
The top oil official for OPEC member Libya told Reuters OPEC does not need to meet to discuss oil policy in February because the market is well supplied and prices of $100 are justified.
