Brent Set For Second Weekly Gain
Brent crude oil was poised for another weekly rise as the looming US military strike in Syria kept prices elevated. The commodity traded at $115.18 at 7:24 GMT on Friday morning as investors waited for key US data due out later in the day.
Although US President Barack Obama was able to find support from across party lines and get approval for his plan to launch military strikes in Syria, he has faced resistance from international leaders.
Evidence that Syrian President Bashar al-Assad used chemical weapons against civilians has forced Obama to take a stand about the violation of an international agreement, however other world leaders are concerned about the ramifications of a military strike in the Middle East.
The oil rich region has very fragile relationships and a military strike, no matter how limited, could stir up chaos and send oil prices soaring. CNBC reported that next week, the US government will put Obama's proposal to a vote and decide whether or not the US will act alone without the help of its international allies.
However oil prices could face some resistance as the US Federal Reserve moves closer to tapering its massive stimulus plan. Consistently strong data from the US has most investors betting on September as the start month for the US central bank to start cutting back on its $85 billion per month bond buying plan.
On Thursday the US released positive jobs and service sector data which confirmed that the number one oil consuming nation was nearly ready to stand on its own. Later on Friday, investors will look to employment data for further clues about the Fed's timeline.
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