Oil prices per barrel surged today due to preparations by Western countries for an attack on Syria, raising concerns about oil supply from the Middle Eastern region.
On the London market, the price of a barrel of crude oil briefly jumped to $117.34 before stabilizing at $115.33, up 97 cents from yesterday’s close. On the American market, a barrel traded at $109.92, up 91 cents, after briefly reaching its highest level since May 2011, at $112.24.
The U.S. and its allies are preparing airstrikes against the armed forces of Syrian President Bashar al-Assad, whom they hold responsible for last week’s chemical weapons attack on Syrian civilians.
Syria is not a major oil producer, but analysts say the possibility of further destabilization in the Middle East raises concerns about supply.
“Although it took some time for oil markets to react to the threat of military action in Syria, they are now doing so with full force,” noted Commerzbank.
“The latest price spike raises the question of how much more room there is for this increase. This undoubtedly depends on the outcome of current events in the Middle East region,” they emphasize.
The Organization of the Petroleum Exporting Countries (OPEC) announced today on its website that the price of its reference basket of oil was $109.28 on Monday, which means it was 92 cents higher than the previous trading day.
