Flash: Oil concerns on Egyptian coup – Danske Bank

FXstreet.com (London) - Danske Bank analysts note that in Egypt, a military coup forced President Morsi out of office, ending a days’ long political crisis while plunging the country into uncertainty yesterday.

Hence, they note that geopolitical concerns have returned with a vengeance in the oil market, due to fears that oil supplies passing the Suez channel could be impaired. They write, “While we cannot rule out higher prices, considering also the large drop in US inventories, we do not see a high risk of the recovery being derailed by a surging oil burden due to an ongoing global supply shock.”