Oil prices fall as Egypt violence ebbs

NEW YORK: Oil prices fell Monday, as violence in Egypt appeared to ease, dampening fears about disruptions through the strategically vital Suez Canal. "Some of the concerns about Egypt are now being seen as at least partly resolved," said Adam Sieminski of Deutsche Bank. "The fact that things are not deteriorating makes crude look less risky." New York's main contract, light sweet crude for March, dropped $1.55 to end the day at $87.48 a barrel. In London Brent North Sea crude for delivery in March was at $99.25, down 58 cents compared with Friday's close. The price of New York crude lags far behind Brent owing to large supplies of oil remaining at the main US transit point of Cushing, Oklahoma, according to analysts. The price drop came after Brent last week jumped above the key $100 mark for the first time in more than two years on concerns over the impact of the unrest in Egypt on global energy supplies. On Sunday Egyptian Vice President Omar Suleiman met with opposition groups in an effort to appease an anti-government revolt. Suleiman -- key lieutenant and possible successor to beleaguered President Hosni Mubarak -- invited several opposition groups to join him on a panel to pilot democratic reform. Although demonstrators were unimpressed and vowed to maintain their two-week vigil in Cairo's Tahrir Square, there was little of the violence seen in recent days. While Egypt is not a major crude producer, the country is home to the Suez Canal, which carries about 2.4 million barrels daily, roughly equal to Iraq or Brazil's output. On the back of Egypt concerns, Brent crude spiked to $103.37 last Thursday -- reaching the highest level since September 26, 2008.