For the third consecutive day oil prices increased due to the recent unrest throughout the Middle East, which could cause supply disruptions. Oil was up 0.5% after the U.S. Embassy in Lebanon announced it had been given reports saying there was a higher possibility that attacks would be carried out against citizens of the United States.
Crude was up 2.7% during last week, thanks in part to the Federal Reserve pledging another round of its quantitative easing. The euro retreated from highs of four months versus the dollar.
An analyst on Wall Street said that geopolitical risk was high with the problems in the Middle East. October delivery oil jumped 19 cents on Monday afternoon to $99.19 per barrel. November Brent settled down 65 cents to $115.46 per barrel on the London exchange. In Beirut, the U.S. Embassy said online that it urged citizens to use additional security measures.
Threats to U.S. citizens include an upsurge in overall violence and kidnapping. The streets of Beirut on Monday were filled with thousands of members of Hezbollah the militant Lebanese group. They denounced the U.S. because of the anti-Islam movie triggering protests throughout North Africa and the Middle East.
The unrest started on September 11 when the U.S. consulate in Libya was attacked and resulted in the death of the U.S. Ambassador to Libya and three employees at the Embassy. Also targeted during the recent unrest have been U.S. diplomatic missions in Yemen, Egypt, Sudan and Tunisia.
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