Investing.com - Financial Markets Worldwide
Get 40% Off
Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious Outperformance
Find Stocks Now

More Fighting In Syria Supports Brent Prices

ByBenzinga
AuthorBenzinga
Published 11/08/2012, 01:00 AM
Updated 05/14/2017, 06:45 AM

Brent crude oil held steadily below $111 on Wednesday morning, following President Obama's re-election Tuesday night.

Uncertainty about the election was weighing on prices over the past few days, and with the voting completed, many will be looking to the president to make a decision regarding the upcoming "fiscal cliff." One of Obama's primary responsibilities will be to discuss this bundle of tax hikes and spending cuts set to kick in if the U.S. does not find a long term solution to its deficit by January 2013.

Many worry that this time sensitive issue will play out similarly to the heated debate over the debt ceiling in 2011. Crude oil has been quite sensitive to the issue, as it could send the number one oil consumer into a deep recession.

The U.S. deficit issues are only a small part of a larger demand concern affecting crude prices. China, although seemingly moving toward recovery, has seen slow progress toward expansion. In addition, trouble in the eurozone largely attributed to a financial crisis in Greece has got many investors expecting oil prices to remain low throughout the end of the year.

However, Reuters reported that escalating violence in the Middle East is supporting prices for fear of supply interruptions. The ongoing conflict in Syria reached a new level on Tuesday as explosions in Damascus killed and wounded dozens. During the bombing, gunmen also killed the brother of a parliament speaker.

This violence confirmed fears that the fighting would eventually affect oil supply, as one of the explosions damaged the main oil pipeline that feeds a Syrian refinery.

By Laura Brodbeck

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.