Oil prices today have slightly increased in international markets ahead of crucial negotiations between the United States and Russia regarding the proposal to place Syrian chemical weapons under international control.
A barrel of crude oil on the London market rose by 81 cents to $112.31. In the American market, oil was traded at a price of $108.30, 74 cents higher compared to the previous day’s closing.
- Oil prices have risen above $112 again… as their increase continues to be supported by the threat of military action against Syria, said Gary Hornby, an energy trader at the consulting firm Inenco.
- Given that the U.S. and Russia remain divided over the resolution on the Syrian conflict and the handover of chemical weapons remains uncertain, high-risk premiums are currently factored into prices, he added.
Investors are hopeful that Washington and Moscow will reach an agreement on the handover of Syrian chemical weapons, thereby avoiding an attack by U.S. military forces. U.S. Secretary of State John Kerry is meeting with his Russian counterpart in Geneva today.
Ahead of that meeting, Washington today called on the Syrian regime to quickly disclose the quantity and specifications of the chemical weapons they possess.
Among the important news for the markets is the latest report from the International Energy Agency (IEA), which maintained its projection for oil demand growth for this year, while slightly increasing the forecast for next year. They also state that increased production should help alleviate pressures in the oil markets caused by tensions over a potential conflict in the Middle East.
The Organization of the Petroleum Exporting Countries (OPEC) has meanwhile announced on its website that the price of a barrel of its reference basket of oil was $109.40 on Wednesday, which means it was 14 cents higher than the day before.
