Oil prices jump to highest level since 2014 amid Middle East tensions
Wed Apr 11 2018
Lucy Harlow (1085 articles)
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Oil prices jump to highest level since 2014 amid Middle East tensions

 

Oil prices jumped to their highest level since 2014 Wednesday, as worries about fighting in the Middle East spooked markets.
The day began with President Donald Trump tweeting to threaten a missile attack on Syria in response to reports of a chemical attack by government forces there earlier this week. Later, Saudi Arabia’s air defense reported that it intercepted missiles heading towards its capital Riyadh. Saudi Arabia has been defending itself against missiles launched by Iranian-backed Houthi rebels in Yemen in recent weeks.

The price of oil futures rose more than 2% In midday trading, topping $ 67 a barrel for the first time since December 2014.

Related: You’ll pay 14% more for gas this summer, according to forecast

Syria is not a major oil producer, especially after years of civil war there. But its allies Russia and Iran are both major global producers. Trump’s tweet taunted Russia about its claims it would shoot down any US missile attack on Syria.

Russia vows to shoot down any and all missiles fired at Syria. Get ready Russia, because they will be coming, nice and new and “smart!” You shouldn’t be partners with a Gas Killing Animal who kills his people and enjoys it!

— Donald J. Trump (@realDonaldTrump) April 11, 2018

The uncertainty in the region is enough to send prices higher said Mike Walls, a crude oil analyst Genscape.

“Yes, it’s the tweets, and all the recent geopolitical worries,” Walls said. “There’s so much uncertainty over there for oil traders. If that cools off, it could come back down rather sharply.”

Oil has been relatively high for much of this year, which has lifted gasoline prices being paid by US drivers. The average price of a gallon of unleaded gas stands at $ 2.66 a gallon, according to AAA. That’s up 13 cents in just the last month and up 11%, or 26 cents a gallon, from a year ago. Prices are expected to climb even higher this summer.

 

 

 


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Lucy Harlow

Lucy Harlow

Lucy Harlow is a senior Correspondent who has been reporting about Commodities, Currencies, Bonds etc across the globe for last 10 years. She reports from New York and tracks daily movement of various indices across the Globe

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