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Friday, 11 February 2011

Egypt Maintains Business as Normal Away from the Media Spotlight - Live Stream via


Additionally looking at sea traffic surrounding the port of Alexandria, life would appear to be proceeding as normal - see below diagram.

What can clearly been seen here is there are a substantial amount of Cargo vessels and oil tankers in and around the port. Notice the highlighted section in the center at the bottom which shows the quantity of vessels in range of this map, which demonstrates there is still a substantial amount of activity around Egypt. This goes against the mainstream media, which has focused almost solely on the demonstration in Cairo while paying little attention to other areas of Egypt which some would argue are more significant. Since it is the ports and oil industry are the lifeblood of the Egyptian economy which has been growing at or around 7% annually since 2005.

Also the below picture shows just how close the primary oil pipeline in Egypt the "Sumed Pipeline" runs to Cairo, which throughout the crisis has continued to flow without disruption.


This has been the main course of concern for investors, which is why you have seen a spike in the volatility of oil price recently with Brent Crude oil soaring above $100 a barrel in London. However upon hearing the news of Mubarak's resignation earlier today oil prices have dipped below pre-crisis levels.

A huge investor in Egypt's oil is the US oil major Apache, which gets approximately 24% of its revenue from Egypt. (see below chart) has seen a negative impact on its share price as the tensions have escalated throughout Egypt. Investors reasoning behind this was because of the potential for supply disruptions and potential for the government or military to cut of supplies or force out western companies as part of a backlash against America or the west in general.

After the announcement of Mubarak's resignation, investors can clearly be seen moving into shares of Apache as confidence of potential supply disruptions eased.


To conclude, despite all the attention by the mainstream media on the events in Tahrir Square, business through trade and commerce continues virtually unabated throughout Egypt.

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