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Following U.S. Missile Strike On Syrian Airfield, The Price Of Oil Surges

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Following U.S. Missile Strike On Syrian Airfield, The Price Of Oil Surges

The price of oil was trading higher by more than 2 percent Friday morning in reaction to President Donald Trump's ordering of a missile strike against a Syrian airbase believed to have been used to facilitate a chemical attack against civilians.

U.S. West Texas Intermediate (WTI) crude futures rose $0.70 per barrel at $52.40 and traded as high as $52.94. Brent crude futures rose $0.68 per barrel at $55.57 and traded as high as $56.08, marking its highest level since March 7.

While Syria's oil production on the global stage is minuscule and insignificant, oil investors are on edge as to what impacts this will pose for the entire oil-rich Middle East region.

GasBuddy's senior petroleum analyst Patrick DeHaan commented in a press release that oil prices "hate turmoil," but it is still too early to understand how severe or how long the impact on oil prices will last.

DeHaan also stated that for at least the time being there will be no impact on North American gasoline prices, although this could change at any moment.

Oil's Value Tied To Developments

Dan McTeague, GasBuddy's senior Canadian petroleum analyst, added that Trump's order to strike Syrian military targets "brings forth risk and uncertainty on a global scale."

"Oil's rise this evening is based on geopolitical circumstance and as a benchmark commodity and hedge, it is likely its value will rise in proportion to developments," McTeague added.

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Image Credit: By Tennessee National Guard Public Affairs Office - https://www.dvidshub.net/image/3234555/president-trump-visits-hermitage, Public Domain, via Wikimedia Commons

 

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