Oil prices surge on worries over military action in Syria

<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>

The video cannot be shown at the moment. Please try again later.

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.

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.