BackOil rises as Russia bombs Syria, US faces hurricane
US crude rises 21 cents at $45.44 a barrel, Brent crude oil up 32 cents at $48.55 a barrel
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London: Oil prices rose on Wednesday on concerns of an escalation in the Syrian war after Russia started air strikes against Islamic State and the approach of a hurricane on the US East Coast kept investors wary.
Russian warplanes carried out several air strikes against Islamic State targets in Syria on Wednesday, shortly after the Russian parliament approved military action.
The US National Hurricane Center said the 2015 Atlantic season’s third hurricane, Joaquin, was expected to reach the Bahamas on Wednesday night.
“Hurricane Joaquin may be having an effect on the market. High seas along the East Coast have been forecast and that could affect barges carrying refined products," said David Thompson, executive vice-president at Washington-based commodities broker Powerhouse.
US crude, also known as West Texas Intermediate or WTI, was 21 cents higher at $45.44 a barrel by 1458 GMT, on course to end September down 7%.
Brent crude oil was up 32 cents at $48.55 a barrel, heading for a 9% fall this month.
The market defied bearish news of a larger-than-expected build in US crude oil stockpiles. Inventories rose by 4 million barrels to 457.92 million barrels last week, US government data showed, much less than a forecast of a 1 million barrel rise. Reuters
Additional reporting by Barani Krishnan in New York, Aaron Sheldrick in Tokyo and Henning Gloystein in Singapore.
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