The price of European Brent Crude oil rose by 25% in 2017 compared with the previous year, but oil fuel used in construction (Gas Oil/DERV) only rose by 10%.
The strikes of Saturday marked the biggest intervention by Western countries against the president Syria, Bashar Al-Assad and his ally Russian Federation, who is to face further economic sanctions over its role in the conflict. U.S. President Donald Trump has threatened to withdraw the United States from the pact, barring action from Congress and Europe.
NEW YORK, April 16 (Reuters) - Oil prices dropped on Monday as investor concern waned about escalating tensions in the Middle East following air strikes on Syria over the weekend.
At the time of writing, Brent crude traded at US$71.87, down by 0.98 percent from Friday's close, and West Texas Intermediate was down 0.85 percent to US$66.82 a barrel, after on Sunday the US Ambassador to the UN Nikki Haley said Washington would announce the third round of sanctions against Russian Federation today.
Oil prices had risen almost 10 percent in the run-up to the strikes, as investors bulked up on assets, such as gold or U.S. Treasuries, that can shield against geopolitical risks.
"That's a price that I don't think is hurting USA consumers too much", Kelly said, adding that $70 oil is a price that's actually helping the stock market and US energy companies.
Although Syria is not a significant oil producer, the tension in the region of Middle East tends to put oil market on edge because the area of Middle East which is the main oil Producing area will also be affected by conflicts in Syria.
"Investors continued to worry about the impact of a wider conflict in the Middle East", ANZ bank said.
Investors added to their bullish position, which is now almost equal to 640 million barrels of oil in past 9 months.
He added that he is not "calling for sustained prices much higher than this.I'd rather play it the other way and say that the USA economy can take this; but if you think that higher oil prices are going to push up rates, push up inflation in the USA and we're going to sustain this, then I think you still go with cyclicals, companies that can benefit from higher interest rates, because I think that will be the ultimate result of oil prices staying where they are". This total is highest since March 2015 said Baker Hughes on Friday.
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