Oil prices up in U.S. after airstrike in Syria
- Author: Leroy Wright Apr 07, 2017,
Apr 07, 2017, 23:24
Gold, foreign exchange, oil USA and German 10-year bonds all had strong reactions to the US air strikes.
"It is known to everybody that the Syrians abandoned their chemical weapons in an agreement with the United Nations and therefore there is no chemical weapon owned by the Syrian government", said the Chairman of the Iranian Parliament's National Security and Foreign Policy Committee Alaeddin Boroujerdi on Friday, in reaction to the unilateral USA missile attack to a Syrian air base in Homs Province.
The toughest action yet by the U.S.in the six-year civil war in Syria ramped up the geopolitical uncertainty across the Middle East.
Oil exchange-traded funds such as the United States Oil Fund LP (ticker: USO) and the United States Brent Oil Fund LP (BNO) were also higher on Friday after WTI crude prices pushed above $52 a barrel and Brent oil prices traded at more than $55 a barrel.
"Oil markets are back in bullish mode after the setback of the previous weeks". This news coming in said the analyst seems to bring into play geopolitical risks that have affected the price of crude during Friday trading.
Although Syria has limited oil production, its location and alliances with big oil producers in the region mean any escalation of the conflict has the potential to increase supply-side fears. A US defence official called the USA action a "one-off" event.
The analyst said that it could be speculative moves pushing the prices higher because there is nothing that is fundamental supporting this type of rise we are seeing today.
The jump in crude prices boosted Asian energy firms, with Hong Kong-listed PetroChina jumping more than two percent, Australia's Woodside Petroleum 1.3 percent higher and Inpex in Tokyo surging four percent.
"The production outages in Canada will. continue to have a price-supportive effect", said Carsten Fritsch, commodities analyst at Commerzbank.
Russia, which is part of a deal between OPEC and non-OPEC oil producers struck late last year to rein in supplies, said on Friday it was too early to say whether a deal could be extended into the second half of the year.