Oil price pushed up by escalating tensions in Syria

The price of oil has risen for the second day in a row, pushed up by an escalation of military action in Syria. 

 

In early trading, WTI was up at $45.67 per barrel – a 2.1 per cent increase from yesterday, while Brent was 1.5 per cent higher at $48.39 per barrel. 

 

Today, Russia enters its third day of air strikes over the Middle Eastern country, which is already being targeted by the US, UK and France. 

 

 

Concerns have been raised that Moscow is using indiscriminate attacks, however, which has exacerbated uncertainty over the state of oil reserves there. 

 

A report released on Wednesday also showed how global demand of oil increased in the first half of 2015 compared to 2014.

 

The long-long term decline in crude, which has lost around a quarter of its value since June, is the result of a worldwide oversupply relative to consumption. 

 

That said, oil is set to end the week lower overall, as yesterday the US National Weather Service downgraded the risk of Hurricane Joaquin hitting key East Coast oil supplies in the US. The hurricane has already brought heavy winds and rain to parts of the Caribbean.