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US crude oil price dips as limited military strike on Syria looms

Thursday, 5 September 2013 - 1:54pm IST | Agency: ANI
US oil saw a dramatic drop in its global rate as it appeared that a military strike against Syria would disrupt its supply, Fox Business reports

Crude oil in the United States has lost more than a dollar per barrel, amid fears that a possible military strike on in Syria might disrupt Middle East oil exports. US oil saw a dramatic drop in its global rate as it appeared that a military strike against Syria would disrupt its supply, Fox Business reports.

The drop comes after the US Senate Foreign Relations Committee passed a resolution authorizing use of military force in Syria on Wednesday.

According to the report, any kind of Middle East unrest could further tighten already strained global supplies. Middle East is said to be pumping a third of the world's crude, the report added. US markets are already struggling with a supply loss from OPEC producer Libya, as strikes at ports and pipelines have shrunk exports to around 80,000 barrels per day from more than tenth of its capacity. US crude oil traded at its highest peak last week at 112.24 dollars.

However, it then traded down to 104.21 dollars earlier this week, when military action against Syria was less certain. It is being speculated that Middle East tension might also widen Brent's premium to U.S. crude, which settled at 7.68 dollars per barrel.


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