Paris attacks: Oil prices climb nearly two per cent on Middle East uncertainty
Oil prices edged up today with analysts attributing the climb to greater uncertainty in the Middle East as a result of the Paris Attacks and the French strikes on Isis targets in Syria.
Brent crude – the North Sea benchmark – climbed 1.1 per cent, just creeping past $45 a barrel. The US benchmark, West Texas Intermediate crude, was up 1.87 per cent to $41.50 a barrel.
However, the gains were marginal compared with falls over the last 18 months – Brent crude remains cheaper than it was last Wednesday.
“Oil prices are gaining slightly at the start of the new week in response to the increased geopolitical risks following the terrorist attacks in Paris,” said analysts at Commerzbank.
Any rebound in oil prices is expected to be muted given the high level of stockpiles that have been built up.
“With record high stockpiles, the world is likely remain suitably oversupplied for the foreseeable future,” said Mike van Dulken, head of research at Accendo Markets.