Possible attack to Syria to impact world oil market
Azerbaijan, Baku, Sept. 3 / Trend A.Badalova/
Geopolitical risk in the Middle East drove oil prices higher this week, as the political situation in Egypt remains tense and the US appeared to be ready to conduct military strikes against Syrian President's forces within days, Global Energy Studies Centre (CGES) said in its report on Syrian unrest and its impact on the world oil prices.
In the report CGES said that Syria itself is not important for the oil market, since ,even before the civil war started, its net oil exports were minimal.
"Prices are up because of the wider ramifications of an attack, "which could drag the whole region further into the conflict, and concerns about how the Assad regime, or its allies might respond", CGES said.
However, CGES believes that for oil markets, the most tangible concern is that an attack will reverberate throughout the region, further destabilising nearby countries like Iraq, which are much more important for the world's oil supply.
CGES also mentioned that disruption continues in flows via Iraq's Kirkuk-Ceyhan oil pipeline (via which Iraqi oil is supplied to Turkey), which has been hit by sabotage six times this month, while scheduled maintenance in the southern loading terminals of the country in September is expected to reduce exports by up to 500,000 barrels per day.
On Monday the price on Brent on the ICE Futures exchange in London stood at $113.84 per barrel. The cost of WTI October futures on the New York Mercantile Exchange stood at $106.62 per barrel.
Some Western countries as well as Turkey have already supported intervention in Syria following another escalation of the situation there. On August 21, media outlets reported a large scale deployment of chemical weapons near Damascus by Syrian Government Troops. Over 600 people were the victims of the attack.
Earlier the US president declared that the use of chemical weapon is a 'red line' for the Assad regime. Media outlets also reported preparations of the Navy and Air Force of these countries to begin intervention.
Clashes between the government forces and armed opposition have been continuing in Syria for over two years. According to UN statistics, the total number of victims of the conflict in Syria is more than 100,000 people. The Syrian authorities say they are opposed by well-armed militants.