Brent oil prices jumped above $101 a barrel for the first time since 2008 on Monday on concern that unrest in Egypt could spread to Middle Eastern crude-producing countries or disrupt Suez Canal flows. Egyptian President Hosni Mubarak overhauled his government in an attempt to defuse a popular uprising but protesters rejected the changes and said he must surrender power. The Suez Canal continued to operate normally.
Brokers and analysts also pointed to a recently improving economic outlook and demand growth already providing bullish momentum for oil prices, along with heating fuel demand boosted by severe cold snaps during the Northern Hemisphere winter.
Monday saw more supportive economic data from the United States in the form of better Midwest factory activity and firmer consumer spending. The Opec oil producers group has refrained from announcing any output boost, despite consumer countries' trepidation about the threat posed by elevated oil prices to economic recovery.
In London, ICE Brent crude for March rose $1.59 to settle at $101.01 a barrel and reached $101.73 intraday, the highest since prices touched $103.29 on September 29, 2008. US crude oil for March delivery rose $2.85, or 3.19 percent, to settle at $92.19 a barrel, reaching $92.84 intraday, both the highest since October 2008. Analysts and brokers had expected Brent's move over $100 to help US crude push above $92.58, the previous 2011 peak from January 3.