Oil Retreats From Three-Year High as Syria Tensions Simmer

Oil Retreats From Three-Year High as Syria Tensions Simmer

Oil Retreats From Three-Year High as Syria Tensions Simmer

Aside from the race of profit taking after the air strikes oil has come under some pressure from another rise in US drilling activity.

Oil pumping facilities are seen at Venezuela's western Maracaibo lake in Venezuela, November 5, 2007. As per the sources, these missiles were targeting on three chemical weapons in Syria in retaliation for a suspected poisoin gas attack on April 7. This change was marked due to the view of weekends of USA - led missile strikes on Syria which were unlikely to mark the start of a much greater conflict.

Brent crude oil futures were at $71.87 per barrel at 0124 GMT, down 71 cents, or 1 per cent from their last close.

Although Syria itself is not a significant oil producer, the wider Middle East is the world's most important crude exporter and tension in the region tends to put oil markets on edge.

Investors have added to their bullish positions in Brent, which now equal almost 640 million barrels of oil, in nine out of the last 10 months, in part thanks to the premium of the front-month futures contract over those for delivery at a later date, known as "backwardation".

Traders said markets in Asia began cautiously after the weekend strikes, while oil markets also came under pressure from a rise in United States oil drilling activity.

Despite this, Brent is still up more than 16% from its 2018 low in February, due to healthy demand and also because of conflict and tension in the Middle East. USA companies have added seven signs in the week up to April 13, bringing the total to 815.

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