Brent crude oil futures, already at their highest levels in more than three years, extend gains after Pres. Trump tells Russia in a tweet to “get ready” for U.S. missiles to be fired at Syria.
At last check, Brent crude +1% at $71.72/bbl and U.S. WTI crude also +1% at $66.19/bbl.
“Fears that the supply of crude could be interrupted as a result of [an international strike] is the main reason behind the oil price rally,” says Forex.com analyst Fawad Razaqzada, while cautioning that oil's rise may be limited as U.S. production is expected to rise further in the coming months.
“We think the fundamentals do not justify the current price [but] the market is focusing more on the politics and ignoring some of the warning signs, especially the hike in U.S. oil production,” says Commerzbank head of commodity research Eugen Weinberg.
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