The possibility of a military strike on Syria has investors worried an attack could spread trouble across the Middle East and cut off oil supplies. But, for the first time in 50 years, the US is not as worried about disruptions to the oil markets, resulting from a possible military strike on Syria, as domestic production is at a 20-year high.
As always, the markets are roiling in anticipation of a US-led attack on Syria, and the ensuing trouble that such an attack could cause in the Middle East, and its impact on global oil production and supplies.
On the New York Mercantile Exchange, West Texas Intermediate crude oil jumped more than $3 a barrel on Tuesday to begin trading on Wednesday at $110.45. Gasoline prices in the US have risen the most in six weeks despite most analysts having predicted a fall in price in line with the traditional seasonal decline in demand.
The problem is that any conflict in the Middle East runs the risk of spilling over into the other countries, potentially impacting on crude oil production and supplies to the rest of the world via the Straits of Hormuz. (Related article: Has the Shale Bubble Already Burst?)