Oil rises on Syria concerns; supply data on tap: Marketwatch
YEREVAN, August 27. /ARKA/. Oil futures rose in electronic trade Tuesday, canceling out their losses from the previous day, with the markets keeping one eye on the Syrian conflict and another on upcoming supply data.
Crude oil for October delivery CLV3 +0.17% recouped 49 cents, or 0.5%, to trade at $106.40 a barrel, erasing almost all of its 50-cent drop in Monday’s regular New York Mercantile Exchange session.
Likewise, October Brent crude UK:LCOV3 +0.22% recovered 42 cents, or 0.4%, to $111.15 a barrel after falling 31 cents on Monday.
The recovery came as U.S. Secretary of State John Kerry said Washington was certain that the Syrian government used chemical weapons against civilians and that “there must be accountability” for its actions.
Reports early Tuesday said the U.S. was consulting with allies as it decided what sort of action to take against the Syrian regime.
Syria itself is a minor oil producer, IG Markets chief market strategist Chris Weston noted in a post Tuesday on Twitter. The nation’s oil output had fallen to 39,000 barrels a day in the first half of 2013, down from 350,000 barrels a day in March 2011, he wrote.
However, some analysts cited the possibility that an escalation of the conflict could hamper supply more broadly across the key Middle East region. –0--