Egypt developments bode well for safety of a North Sea investment

Latest news are reporting that the Egyptian Vice President Omar Suleiman is in talks with the Muslim Brotherhood to form a new government. I am inclined to be worried about the Muslim Brotherhood controlling this key gateway to the world's trade. The canal has the capacity to handle 2.2 million barrels of oil a day while that of the adjacent Suez-Mediterranean Pipeline is 2.3 million barrels, according to Goldman Sachs Group (actual volumes in 2009 were a combined 2.1 million barrels because of cuts in production by the Organization of Petroleum Exporting Countries). For one I am happy to be holding a large investment in the North Sea rather than in the middle East. The price of oil is unlikely to be moderated significantly with this news.

From the BBC web site (http://www.bbc.co.uk/news/world-middle-east-12313405)

The Muslim Brotherhood, or al-Ikhwan al-Muslimun, is Egypt's oldest and largest Islamist organisation.

Founded by Hassan al-Banna in the 1920s, the group has influenced Islamist movements around the world with its model of political activism combined with Islamic charity work.

The movement initially aimed simply to spread Islamic morals and good works, but soon became involved in politics, particularly the fight to rid Egypt of British colonial control and cleanse it of all Western influence.

Today, though officially banned and subject to frequent repression, the Ikhwan lead public opposition to the ruling National Democratic Party of President Hosni Mubarak, who has been in power since 1981.

While the Ikhwan say that they support democratic principles, one of their stated aims is to create a state ruled by Islamic law, or Sharia. Their most famous slogan, used worldwide, is: "Islam is the solution".

Will tomorrow bring the long awaited Xcite Energy RNS?

A day of anticipation of an RNS from Xcite Energy relating to the rig contract came to nought. However, no panic here. Disappointing that the share price dropped 8.5p late in the day to £3.62 after holding firm despite the FTSE taking a beating in the morning but I guess some of my fellow private investors are looking for bad news even if there's no hint of one!

Oil prices rose today to their highest in more than two years with WTI Crude for March delivery gaiing 3.2%, at $92.2 a barrel (its highest sine October 2008) and Brent Crude rose to more than $1.50 to as high as $101.08 a barrel. Its all time high is $147 a barrel hit in July 2008 before the financial collapse.

The reason for the oil price hike continues to be Egypt, with 2 million barrels per day passing through the Suez Canal plus a a further 1 million barrels move through the Suez-Mediterranean pipeline.