One of the prominent risks on the horizon for oil companies is the possibility of closure for the Suez Canal due to the political tensions in Egypt. If such an event were to happen, this would significantly increase the supply costs for Eni SpA (NYSE:E) (BIT:ENI) and Total SA (NYSE:TOT), the major oil suppliers in Europe.
The Suez Canal creates an essential link between the east and the west - oil tankers can move between Asia and Europe and avoid going around the cape of Africa. ‘The waterway shortens the oil supply route to Europe and the U.S. by 6,000 miles, or 10 to 15 transit days. About 3,500 oil tankers pass through the...

