Crude up in Asia on Middle East tensions
In this photo taken July 2, 2012, early morning sunlight illuminates fuel storage tanks at a North Little Rock, Arkansas, petroleum distributorship.AP FILE PHOTO
SINGAPORE—Crude oil prices rose in Asia Thursday with Middle East supply risks coming to the fore after Turkey warned Syria of a tougher response if artillery shellings continue, analysts said.
New York’s main contract, light sweet crude for delivery in November advanced 33 cents to $91.58 a barrel in the afternoon and Brent North Sea crude for November delivery gained 57 cents to $114.90.
“Prices were up as renewed Middle Eastern supply worries outweighed concerns about a slowing global economy,” said Sanjeev Gupta, who heads the Asia-Pacific oil and gas practice at Ernst and Young in Singapore.
Tensions between allies Turkey and Syria took a turn for the worse last Wednesday when a Syrian shell hit the Turkish border town of Akcakale, killing five civilians — two women and three children.
Following the deadly shelling, Turkey’s parliament approved the use of military force if necessary.
On Wednesday, Turkey’s top military commander warned that it would mount stronger retaliatory action should more Syrian shells land in Turkish territory.
“We have retaliated (for the shelling) and if it continues, we’ll respond more strongly,” the head of Turkey’s armed forces, General Necdet Ozel, said in Akcakale.
Turkish authorities also Wednesday confiscated “objectionable cargo” aboard a Syrian passenger plane it intercepted en route from Moscow to Damascus.
The confiscated cargo is believed to be missile parts, Turkey’s NTV news channel reported, while the country’s state-run TRT channel speculated it could be communications equipment.
The fears overshadowed concerns about the global economy after the International Monetary Fund Tuesday cut its global growth forecast for this year to 3.3 percent from its July estimate of 3.5 percent, which has hit stock markets.
