The price of US oil stayed above $101 a barrel today after being pushed higher by unrest in Egypt and a fall in US energy stockpiles that suggests a recovery in demand. Benchmark crude for August delivery was up 16 cents to $101.40 in electronic trading on the New York Mercantile Exchange. The contract gained $1.64 to $101.24, its highest close since May 2012 yesterday. Nymex floor trading is closed today for the Independence Day holiday. Brent crude was down 26 cents to $105.50 on the ICE exchange in London. Two events propelled the price of oil higher in the past day - unrest in Egypt and a big drop in US oil supplies. Traders were worried that political upheaval in Egypt could slow the flow of oil from the Middle East to world markets. Embattled Egyptian President Mohammed Morsi had vowed not to give in to protesters' demands for his resignation, but the head of Egypt's military announced last night that Morsi will be replaced and new elections will be held. Egypt is not an oil producer but its control of one of the world's busiest shipping lanes gives it a crucial role in maintaining global energy supplies. The Middle East accounts for about a quarter of the world's crude oil output, or 23 million barrels per day. About 2 million barrels of that, or 2.2% of world demand, are transported daily through the Suez Canal, which links the Mediterranean with the Red Sea. Much of that oil is headed to Europe, but a supply drop anywhere in the world leads to higher prices everywhere. In the US, the Energy Department said yesterday that crude supplies fell by 10.3 million barrels from the previous week, more than three times the drop that analysts had expected. The drop was likely due to reduced supplies from Canada because of a temporary pipeline shutdown, as well as increased demand from a BP refinery that restarted in Indiana. Petrol supplies fell as well, while analysts expected an increase. The drop in oil and petrol supplies could be an indication that US demand is rising.

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