Dailyreport
Crude oilprices drops to $72
Tuesday, oil prices around the world went down because investors were less worried about problems caused by the political unrest in Syria. Instead, they were more interested in bigger economic issues.Crude oilprices drops to $72
At 9:50 WAT, WTI crude in the US fell 0.20% to $68.23 per barrel and Brent crude fell 0.11% to $72.06 per barrel. On Monday, both of the benchmarks had gained more than 1%.
When rebels took over Damascus on December 8, they got rid of Syrian President Bashar al-Assad, ending his 24-year rule.
The new government has started to stabilise the country by getting banks and the oil industry back up and running.
Even though Syria doesn’t produce a lot of oil, its strategic ties with Russia and Iran, as well as its political importance, have caused worries about possible instability in the region.
The markets are now looking ahead to the meeting of the US Federal Reserve on December 17th and 18th, where they expect interest rates to be lowered by 25 basis points. Traders are also keeping an eye on this week’s inflation data, which could have an effect on the Fed’s decision.
Meanwhile, news that China will adopt a more flexible monetary policy next year to help its economy—the first time this has happened in 14 years—gave the oil market some hope.
Even though there is still a lot of uncertainty, analysts say that the immediate risks to oil supplies from Syria’s political transition seem to be limited.
