Crude oil prices surged overnight as fears of unrest spreading into Saudi Arabia and disrupting oil supplies remained a key issue. This morning's early surge in crude oil prices, with Brent crude up 6.0% to $118.00 per barrel pressured risk appetites and inspired greater flight to quality interest in markets like Treasuries and Gold. The growing fear appears to be spreading unrest into Saudi Arabia, which represents about 10% of world oil production and by some accounts has an estimated 4 million barrels per day of spare capacity. Some traders noted that while Saudi Arabia has talked about boosting crude oil supplies to help make up for the supply disruptions, the market has become more interested in actual follow-through with those intentions.
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