Crude prices rise after Syrian president’s regime collapse
Oil prices rose on Monday amid increased uncertainty in the Middle East following the demise of Syrian President Bashar al-Assad's regime.Brent crude rose 36 cents to $71.48 per barrel, while US West Texas Intermediate crude climbed 38 cents to $67.58 per barrel.
However, the gains were limited by concerns about lower oil demand in the coming year, according to Reuters.
Syrian rebels announced on state television Sunday that they had deposed President Bashar al-Assad, effectively ending a 50-year family dynasty.
The swift offensive raised concerns about a new wave of instability in a conflict-ridden region.
"The development in Syria has added a new layer of political uncertainty in the Middle East, providing some support for the market," said Tomomichi Akuta, senior economist at Mitsubishi UFJ Research and Consulting.
"But Saudi Arabia's price cuts and OPEC+'s production cut extension last week underscored weak demand from China, indicating the market may soften towards the end of the year," he said, adding that investors are looking for early signs of any impact on the markets from U.S. President-elect Donald Trump's expected energy and Middle East policies.
Saudi Aramco, the world's largest crude oil exporter, announced on Sunday that it has reduced its January 2025 prices for Asian buyers to their lowest level since early 2021.
This move comes as weak demand from top importer China continues to have an impact on the market.
On Thursday, OPEC+ announced a three-month delay in the start of oil output increases to April, as well as an extension of the full rollback of production cuts until the end of 2026.
The group had planned to start unwinding cuts in October 2024, but weaker global demand, particularly from China, and rising output in other regions have resulted in multiple delays. OPEC+ accounts for approximately half of global oil production.
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