Oil prices rise as US threatens Syria

US threats of military action against Syria have pushed oil futures by more than $3 a barrel to a six-month high.

A day after the US Secretary of State John Kerry claimed thereâ„¢s Å“undeniable” evidence that the Syrian government used chemical weapons against insurgents, another senior US official, Defense Secretary Chuck Hagel talked about Washingtonâ„¢s preparedness to attack Syria if President Barack Obama issues the order. Å“We have moved assets in place to be able to fulfill and comply with whatever option the president wishes to take,” Hagel said.

Some unspecified senior American officials were even more bellicose as they told NBC News that the US has planned to launch missile strikes against Syria Å“as early as Thursday”.

The US saber rattling, made the price of Brent crude oil rise above $114 a barrel in London trading rallying by more than $3 on the day. Itâ„¢s the highest price for Brent crude oil since February 27.

The price of US crude, or West Texas Intermediate (WTI), also known as Texas light sweet, rose as high as $109.32, up by about $3 on the day at their highest level of the year.

Marketwatch.com has quoted Craig Erlam, market analyst at Alpari in London as saying that Å“The next key level [for Brent] above here will be $115, although I wouldnâ„¢t be surprised to see it close in on the 2013 highs just below $120.”

Syria is not a major oil producer. Its average oil output stood at approximately 400,000 barrels per day. The output however dropped dramatically in the wake of the ongoing military conflict and economic sanctions. Oil market and traders are worried that a US-led military intervention in Syria will have greater regional implication threatening global oil supplies.

Iran, Russia and China have warned against the Westâ„¢s military intervention in Syria says it could would have terrible consequences for the entire region.

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Republished from: Press TV