This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

5 Sectors Impacted by Egypt's Unrest

Oil was the most affected piece of the market as a result of the uprising. Brent crude oil futures jumped over $100 a barrel for the first time in 28 months. The last time crude hit $100 a barrel was on Oct. 1, 2008.

The concern is getting oil shipped through the Suez Canal. Traders worry that instability in Egypt will spill over to other Middle Eastern countries and disrupt the flow of oil out of the region. According to the U.S. Energy Information Administration, Egypt has the largest oil refining industry in Africa and Egypt's Sumed Pipeline also provides a pipeline network for exports to Europe .

Apache Oil (APA - Get Report) has 25% exposure to Egypt. Real Money contributor Dan Dicker believes that if an investor has the risk tolerance -- Apache could present an opportunity. He is clear that risks abound, i.e. a new government might not feel obligated to meet previous contractual responsibilities to Western companies. He feels a rebound in the stock from last week's panic and stability in the trading could present a buying opportunity.

Another dynamic in the energy sector is M&A activity. Chinese offshore oil producer CNOOC (CEO) agreed to a $1.3 billion deal with Chesapeake (CHK), continuing its aggressive drive for acquisitions. Further driving up the price of oil and oil companies.

2 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
ADM $48.28 0.00%
APA $70.38 0.00%
BA $149.60 0.00%
FRO $2.81 0.00%
GD $131.27 0.00%

Markets

DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs