Oil Climbs On Syria Worries, Israel Missile Test
From Fox Business
Brent crude oil futures rose more than $1 per barrel on Tuesday and settled 1.2 percent higher, fueled by tighter global supplies and as U.S. lawmakers voiced support for military action against Syria, upholding fears of oil supply disruptions in the broader Middle East.
U.S. President Barack Obama urged quick congressional action authorizing the use of military force against Syria and won support of leaders from both parties in the U.S. House of Representatives for limited strikes against President Bashar al-Assad’s forces.
U.S. oil prices hit their highest level this year on Aug. 28, while Brent prices were at their highest since February.
Syria is not a major oil producer but investors feared a military strike against the nation could spread across the Middle East, which pumps a third of the world’s oil.
There’s a roughly $10 per barrel geopolitical risk premium built into the price, said Gene McGillian, analyst with Tradition Energy in Stamford, Connecticut.
“You’ll see the geopolitical risk deflated as time goes by if we don’t see any real supply disruptions,” he said.
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