Oil dives as the West hints at no further Syria strikes
LONDON — The price of oil fell sharply on Monday as traders started to see a decreased likelihood of further escalation between Western powers and Syria, following Friday night's air strikes on the conflict-stricken nation.
Both major oil benchmarks have fallen on Monday morning. Brent oil — the international benchmark — is down 1.36% to trade at $71.63, while the more US-focused WTI oil is 1.23% lower at $66.56, as of around 1.10 p.m. BST (8.10 a.m. ET).
A coalition of the USA, UK, and France led targeted strikes on bases in Syria on Friday evening. Some commentators expected more strikes may have been planned.
However, on Sunday, British foreign secretary Boris Johnson told the media that the UK has no current plans for more strikes, while President Trump tweeted over the weekend "Mission Accomplished!"
A lack of further action is a negative for oil prices. Traders reason that action in the region would disrupt oil production, creating a supply shortage, and pushing up prices. The lack of action removes this potential supply squeeze, driving up prices.
Oil price falls on April 16 as the West suggests no more Syria strikes - Business Insider
LONDON — The price of oil fell sharply on Monday as traders started to see a decreased likelihood of further escalation between Western powers and Syria, following Friday night's air strikes on the conflict-stricken nation.
Both major oil benchmarks have fallen on Monday morning. Brent oil — the international benchmark — is down 1.36% to trade at $71.63, while the more US-focused WTI oil is 1.23% lower at $66.56, as of around 1.10 p.m. BST (8.10 a.m. ET).
A coalition of the USA, UK, and France led targeted strikes on bases in Syria on Friday evening. Some commentators expected more strikes may have been planned.
However, on Sunday, British foreign secretary Boris Johnson told the media that the UK has no current plans for more strikes, while President Trump tweeted over the weekend "Mission Accomplished!"
A lack of further action is a negative for oil prices. Traders reason that action in the region would disrupt oil production, creating a supply shortage, and pushing up prices. The lack of action removes this potential supply squeeze, driving up prices.
Oil price falls on April 16 as the West suggests no more Syria strikes - Business Insider
