Syrian concerns outweigh oil inventory data

US light crude oil has been driven to its highest price in more than two years by worries that any military strike by the US could spark a wider conflict with the potential to disrupt Middle Eastern oil exports.

By mid-afternoon in New York, the price of crude was up 0.84% at $109.92 a barrel, after having traded higher than $112 a barrel earlier in the session, its highest price since 3 May 2011.

The steep price of oil reveals the depth of the anxiety over the situation in Syria and the Middle East in general. Unrest in Egypt has been supporting oil prices for some weeks now and as tensions in Syria have escalated, there has been a corresponding response in the oil market, with a strong concern being the possibility of a spillover of hostilities into neighbouring countries which could threaten larger supply disruptions in countries with significant oil production.

The price of US crude oil has increased 20% so far this year, despite surging domestic production and historically-high stockpiles. The Energy Information Administration (EIA) published its weekly petroleum status report today. The data showed that US crude output rose 1.2% last week, reaching its highest level since 1989, while stockpiles expanded by 3.0 million barrels.

Normally such a substantial build would be expected to pressure the oil price, but the prospect of an attack on Syria has been today’s main driver of price movement.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen. 79% van de retailbeleggers lijdt verlies op de handel in CFD’s met deze aanbieder.
Het is belangrijk dat u goed begrijpt hoe CFD's werken en dat u nagaat of u zich het hoge risico op verlies kunt permitteren.
CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen.