offshore

Oil prices increased slightly today following an unclear view on whether diplomatic efforts to eliminate Syria’s chemical weapons will avert a US military strike against the country, which could lead to disruption of oil supplies from the key producing region.

Brent crude increased by eight cents to $111.58, after ending up 25 cents on Wednesday, while US oil increased by 12 cents to $107.68, reported news agency Reuters.

A warning was issued by The White House that a diplomatic solution over Syria would take time.

The White House promised to pursue discussions, despite scepticism from US lawmakers that Damascus would make good on a Russian plan to surrender its chemical weapons.

The US Energy Information Administration data reports that US crude oil inventories decreased slightly last week, while stockpiles at the Cushing, Oklahoma, hub declined for the tenth straight week.

According to loading programmes and industry sources, in September 2013 and during October North Sea oil output is set to rise by 8.2%, which may be not enough to put much downward pressure on Brent oil prices given wider supply disruption.


Image: The oil price rise stemmed from Syria’s unclear commitment. Photo courtesy of nuttakit.

Energy group