Oil price rises amid falling regime in Syria-Reuters
Kyiv • UNN
Brent and WTI oil prices rose 0.5% due to political tensions following the overthrow of the Assad regime in Syria. Saudi Aramco is cutting prices for Asia due to weak demand, while OPEC+ is delaying production increases until April 2025.
Oil prices rose on Monday amid rising political tensions in the Middle East following the fall of Syrian President Bashar al-Assad's regime. At the same time, growth was limited by expectations of lower oil demand in 2025.
This is reported by Reuters, writes UNN.
Brent crude futures added 36 cents (0.51%) to reach 7 71.48 a barrel as of 05:13 GMT. West Texas Intermediate (WTI) crude rose 38 cents (0.57%) to 6 67.58 a barrel.
On Sunday, Syrian rebels via state television announced the overthrow of President Assad, ending the 50-year rule of his family dynasty. This event raised fears of further destabilization in the region, which is already in a state of conflict.
Events in Syria have increased political uncertainty in the Middle East, which has supported the oil market
But lower prices in Saudi Arabia and OPEC+ continued production cuts last week highlighted weak demand from China, indicating that the market may soften by the end of the year
Saudi Aramco, the world's largest crude oil exporter, announced a January 2025 price cut for Asian buyers to its lowest level since early 2021. This decision is due to weak demand from China, the largest oil importer, which continues to put pressure on the market.
On Thursday, the organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, decided to postpone the start of an increase in oil production for three months, postponing it to April 2025. In addition, the group extended the deadline for fully curtailing production cuts until the end of 2026.
OPEC+, which accounts for about half of global oil production, planned to begin gradually lifting restrictions from October 2024. However, slowing global demand, particularly from China, as well as increased oil production by other countries forced the group to postpone this plan several times.
Meanwhile, in the United States, the number of active oil and gas drilling rigs reached its highest level since mid-September last week, indicating an increase in production by the world's largest oil producer.
recall
on December 8, it became known about the collapse of the fall of the regime of President Bashar Assad. The Rebel Alliance, which has made significant progress in its offensive since last week, announced the capture of the capital Damascus and reported the fall of ruler Bashar al-Assad.
