Middle East Crisis Sends Oil Prices Soaring
- Update Time : 08:23:09 am, Monday, 9 December 2024
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Uncertainty has gripped the Middle East following the ousting of Syrian President Bashar al-Assad, leading to a surge in global oil prices on Monday. According to a Reuters report, Brent crude oil futures rose by 36 cents, or 0.51%, to reach $71.48 per barrel. Similarly, U.S. West Texas Intermediate (WTI) crude prices increased by 38 cents, or 0.57%, to $67.58 per barrel.
On Sunday, Syrian rebels announced on state television that they had removed Assad from power, ending nearly 50 years of family rule. However, the swift nature of the rebellion has raised concerns about heightened instability in the region, which is already mired in conflict.
Meanwhile, Saudi Aramco, the world’s largest oil exporter, has reduced prices for oil to be delivered to Asian buyers next month, marking the steepest price cut since early 2021. This decision stems from a significant drop in oil demand in China, the world’s largest importer.
In a related development, OPEC+, the alliance of oil-exporting nations, announced last Thursday that it would delay its planned production increase for another three months. The group, which accounts for half of the world’s oil production, will not increase output until at least April.
