Oil prices surge on worries over military action in Syria
Trading Floor News August 28, 2013 4:13 PM
<p>Oil prices surged overnight as investors worried of further turmoil in the Middle East. The price of Brent Crude oil rose at one stage to […]</p>
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Oil prices surged overnight as investors worried of further turmoil in the Middle East.
The price of Brent Crude oil rose at one stage to $117.17, the highest point in six months, with US Crude up $3.09 in yesterday’s session.
Worries over the possibility of military action against Syria hit stocks across the globe and the Dow was seen to touch a two-month low.
The FTSE was down a further 30 points this morning, trading at around 6415. High oil prices have pushed shares in oil companies higher, with Tullow Oil the top riser, however, airlines have been hit by rising fuel bills, with Easyjet dropping over 3%.
Gold is up to $1,427 an ounce; which is a three-month high. This commodity is typically considered a safe investment during times of uncertainty.
At 12.45pm BST BoE Governor Mark Carney is speaking about interest rates, and at 3pm the Pending Home Sales figure is out for the US.
Investors are likely, however, to be anticipating further material on the crisis in Syria as UK PM David Cameron and Barack Obama discuss possible ‘action’ ahead of a National Council meeting scheduled to be held later today.