Oil Prices Rise with Middle East Tensions and Tropical Storm

The oil price per barrel has increased in the midst of rumors of attacks on the leader of Syria and as Tropical Storm Ernesto develops into a hurricane that may obstruct oil operations in the Gulf of Mexico.

The current crude price in the NYMEX for delivery in September gained 80 cents since the latest trading to finish at $92.20 per barrel. In London, the current crude price of Brent for September delivery is higher by 61 cents to end at $109.55 per barrel.

In the Carribean, Tropical Storm Ernesto is getting stronger and was forecasted to develop into a hurricane as the days progress, according to weather reporters in the United States.

The National Hurricane Center (NHC) in Miami said that the wind that Ernesto brings is about 105 kilometers an hour as it moves across the Caribbean to Central America.

The map for the anticipated direction of the storm had it headed directly for the main oil fields in the Gulf of Mexico.

According to Price Futures Group’s Phil Flynn, traders were also observing storms that cover Florida’s east coast. Geopolitical conflict in the Middle East further contributed to the increase in the oil price per barrel.

After a low opening, West Texas Intermediate crude surged higher due to rumors of attack on Syria’s President Bashar al-Assad, reviving fears of growing violence in the country, said Fawad Razaqzada, an analyst for GFT Markets.

The 17-month rebellion versus Prime Minister Assad of Syria finally reached his close inner circle. Recently, Riad Hijab made an announcement of his move to join the rebels.

A bombing in Turkey’s southeastern section disrupted the flow of oil from Iraq.  Authorities of Turkey and Iraq suspect rebels from Kurdistan to be responsible for the explosions.

The North Oil Company of Iraq is slated to begin using a second pipeline and Ceyhan’s exports are to keep on using the oil reserves there.