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Oil rises on Middle East fears

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Investing.com - Oil futures traded higher in the early part of Tuesday's Asian session as traders focused on the deepening civil war in Syria and the prospect of oil-supply disruptions rather than slack U.S. economic data.

On the New York Mercantile Exchange, light, sweet crude futures for October delivery rose 0.56% to USD106.51 per barrel in Asian trading Tuesday. The October contract settled lower by 0.47% on Monday.

In U.S. economic news out Monday, the Commerce Department said durable goods orders fell 7.3% last month following a 3.9% rise in June. Economists expected a July decline of 4%. Non-defense durable goods orders fell 3.3%, the biggest monthly drop since February. Core capital goods orders rose by a revised 1.3% in June.

Recently, weak U.S. data points have stoked speculation the Fed Reserve will not taper its quantitative easing imminently, though the minutes from the central bank's July meeting released last week revealed there is some consensus for tapering later this year.

Amid allegations that the Syrian government used chemical weapons against its own citizens, there is growing speculation that the U.S. and other Western nations are considering an armed response against the country.

While Syria is not a major oil producer, investors fear that the two-year-old civil war could spill over to affect oil supplies in nearby countries

Elsewhere, oil was also pressured Monday on news that a Libyan terminal that was not in use last week is now back online. Libya, an OPEC member, has recently dealt with supply disruptions due to violence near oil assets. The country is home to Africa's largest oil reserves.

Meanwhile, Brent crude for October delivery inched up 0.04% to USD111.14 per barrel on the ICE Futures Exchange.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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