MarketWatch reports that oil prices have jumped on the news of missile strikes on the Syrian government airbase in Homs.
On the London Stock Exchange June prices for Brent futures were up 1,5 % by 8:00 am and amounted to $ 55.76 per barrel. By the closing time of the Thursday trade, futures stopped at around $ 54.89 per barrel.
WTI crude oil futures for May rose to 52.62 US dollars per barrel on the New York Mercantile Exchange NYMEX .
Many people wonder why the situation in Syria has such a big impact on the energy market, because Syria is not among the major oil producers. Analysts at CMC Markets explain the oil volatility by the fact that Syria borders on Iraq. This country takes the second place in oil production among the OPEC members. In addition, the situation with Syria creates tension throughout the region.
Analysts also note that the conflict will have a significant impact on the world’s oil reserves only if Russia and the USA intensify confrontation.
In any case, traders should follow the news from the territory of the armed conflict. Oil prices will continue to grow on the possibility of destroying the oil infrastructure.
However, experts continue to stand for the forecast of 60 and 70 US dollars per barrel for 2017 and 2018 respectively. According to them, the forecast is based on the fundamental laws of the market development, but not on speculation around the news.
The material was prepared with the participation of Vladimir Haritonov,
a leading analyst of the brokerage company VOSPARI.