Home / Uncategorized / Oil prices fall after the big gains of last week, when risk fatigue in Syria is established

Oil prices fall after the big gains of last week, when risk fatigue in Syria is established

Oil prices fell on Monday, reversing a fraction of last week's outbreak to a peak of almost 3 1/2 years, as investors took weekend air strikes in Syria.

Intermediate West of Texas

CLK8, -1.26%

lost 58 cents, or 0.9%, at $ 66.81 a barrel. Last week, the benchmark US oil index UU It recovered approximately 8.6%, which was the strongest weekly percentage yield since the end of July last year.

June Brent

LCOM8, -1.43%

fell 68 cents, or 0.9%, to $ 71.90 a barrel on ICE Futures Europe. The international benchmark index increased 8.2% last week. Both the US benchmark index UU Like the crude last week they touched levels that are not seen in more than three years.

A barrage of US, French and British missiles launched on Saturday destroyed much of Syria's chemical weapons capabilities, but left President Bashar al-Assad's conventional army intact, according to US Department of Defense officials. UU

Oil prices rose last week for fear of an escalation of tensions over Syria, which put Russia in favor of Assad in a war of words with the United States, and in anticipation of military attacks.

The missile launch was made in response to an alleged chemical weapons attack that killed civilians in Damascus, an incident that generated widespread condemnation. On Sunday, the Syrian armed forces launched new attacks against the rebels, while the Assad regime tried to demonstrate that the strength of its regime remained intact.

Read: Trump felt cheated, angry about the expulsion of 60 Russian diplomats: report

Investors were taking profits on Monday, said Stephen Innes, senior trader at Oanda, with the expectation of that neither Russia nor Iran, another Assad supporter, would retaliate against the attacks, which were limited to chemical weapons facilities.

"However, tensions in the Middle East and geopolitical risk remain incredibly high, suggesting that oil market risk premia will remain under control, as global oil supplies remain vulnerable to any significant disruption. of the supply, "Innes said in a note to clients.

On Friday, the IEA indicated that the world oil reserves are decreasing and approaching the five-year average that the Organization of the Petroleum Exporting Countries (OPEC) is targeting.

Baker Hughes

BHGE, + 1.37%

reported Friday that the number of active domestic oil rigs rose seven this week. The figure, which offers a glimpse of US oil activity, was for the second consecutive week.

Among the energy products, gasoline

RBK8, -1.12%

fell 0.8% to $ 2,049 per gallon, while heating oil for May

HOK8, -1.10%

lost 0.8% to $ 2,084 per gallon. Those contracts saw gains of 5.7% and 7.3%, respectively, last week.

May natural gas

NGK18, + 0.26%

increased 1 cent, or 0.3%, to $ 2,743 per million British thermal units, up 1.3% last week.


Source link