Oil prices climb amid rising uncertainty after Syrian government collapse

Oil prices surged as the market responded to the fallout from the toppling of the Syrian government, which has shaken the Middle East and dealt a blow to long-time supporters Russia and Iran.

Brent rose toward $72 a barrel and Texas Intermediate was above $67, News.Az reports, citing foreign media.

The fall of Bashar Al-Assad’s regime has created a power vacuum, with multiple groups vying for control, raising the prospect of more violence. Memories of Libya and Iraq loom large in the region, where entrenched rulers were swept aside only for the countries to descend into deeper turmoil.

China’s top decision-making body, meanwhile, said it will pursue a “moderately loose” monetary-policy strategy next year, in a sign of greater easing that will likely be welcomed by investors seeking more stimulus. Policymakers are also girding themselves for another trade war with the Trump administration.

Crude has been confined to a tight range since mid-October, with bullish geopolitical developments in the Middle East and Ukraine countered by weak Chinese demand and ample supply. The market is facing a glut next year, meaning there is little room for a significant output boost from OPEC+.

“Markets are largely pricing that the tensions in Syria will remain contained within its own space and the risks of a wider oil supply disruption remain low,” said Jun Rong Yeap, a market strategist at IG Asia Pte in Singapore.

Saudi Aramco, meanwhile, cut its oil prices to Asia for January after OPEC+ further delayed a resumption of idled production, underscoring the weak market outlook. The state producer also reduced prices for north-west Europe and the Mediterranean, while leaving those for North America unchanged.

News.Az