Brent Crude peaks to two month high- above US$106, amid rising tensions between USA and Syria

17-Jun-13

Brent oil futures spiked to its highest level since September 17, to US$106 a barrel on escalating tensions in Syria. Though Syria is not key to global oil supply, investors are worried that escalation in the civil war could drag in other countries and plunge the oil-producing region into conflict. Adding to the tension was US President’s authorization of the shipment of US weapons to Syrian rebels for the first time, after the White House said it had proof that the Syrian government used chemical weapons against rebels. Oil prices also got an impetus on expectation that US monetary stimulus would continue after a report showed underlying inflationary pressures were muted.