Investing.com - Crude oil futures shook off earlier weakness during U.S. morning hours on Wednesday, climbing to hit a three-week high as investors focused on escalating tensions between Syria and Turkey and the possibility that Iran could support Syria in such a dispute.
On the New York Mercantile Exchange, light sweet crude futures for delivery in November traded at USD93.13 a barrel during U.S. morning trade, rallying 0.8% to the highest level since September 26.
Prices fell by as much as 0.9% overnight to hit a session low of USD91.58 a barrel.
New York-traded oil prices turned higher after U.S. Defense Secretary Leon Panetta said the U.S. offered assistance to Turkey to help prepare for humanitarian and possible military spillover from the war in neighboring Syria.
Tensions between Turkey and Syria have been growing since Syrian shells last week killed five people in a Turkish border village.
Turkey’s top general, Necdet Ozel, warned of a tougher response if Syrian shells continue to land on Turkish soil earlier Wednesday.
Growing tensions between Iran and Israel also remain in focus. There are fears that an escalation of hostilities between Israel and Iran could set off a conflict across the region and send oil prices skyrocketing.
Countries in the Middle East and North Africa were responsible for 36% of global oil production and held 52% of proved reserves in 2011.
Oil prices were lower during the Asian trading session as market sentiment remained under pressure after the International Monetary Fund cut its 2012 and 2013 global growth forecasts on Tuesday.
Investors also remained cautious amid worries over how soon Spain may formally request a bailout and uncertainty over whether international creditors will extend loans to Greece.
Oil traders were awaiting fresh weekly information on U.S. stockpiles of crude and refined products to gauge the strength of oil demand in the world’s largest oil consumer.
The American Petroleum Institute will release its inventories report later in the day, while Thursday’s government report could show crude stockpiles rose by 1 million barrels last week.
The data is released a day later than usual due to the Columbus Day Holiday in the U.S. on October 8.
The U.S. is the world’s biggest oil consuming country, responsible for almost 22% of global oil demand.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for November delivery added 0.15% to trade at USD114.67 a barrel, with the spread between the Brent and crude contracts standing at USD21.54 a barrel.
London-traded Brent prices have been drawing support from a combination of lingering concerns over a disruption to supplies from the Middle East and worries over declining production in the North Sea-region.
On the New York Mercantile Exchange, light sweet crude futures for delivery in November traded at USD93.13 a barrel during U.S. morning trade, rallying 0.8% to the highest level since September 26.
Prices fell by as much as 0.9% overnight to hit a session low of USD91.58 a barrel.
New York-traded oil prices turned higher after U.S. Defense Secretary Leon Panetta said the U.S. offered assistance to Turkey to help prepare for humanitarian and possible military spillover from the war in neighboring Syria.
Tensions between Turkey and Syria have been growing since Syrian shells last week killed five people in a Turkish border village.
Turkey’s top general, Necdet Ozel, warned of a tougher response if Syrian shells continue to land on Turkish soil earlier Wednesday.
Growing tensions between Iran and Israel also remain in focus. There are fears that an escalation of hostilities between Israel and Iran could set off a conflict across the region and send oil prices skyrocketing.
Countries in the Middle East and North Africa were responsible for 36% of global oil production and held 52% of proved reserves in 2011.
Oil prices were lower during the Asian trading session as market sentiment remained under pressure after the International Monetary Fund cut its 2012 and 2013 global growth forecasts on Tuesday.
Investors also remained cautious amid worries over how soon Spain may formally request a bailout and uncertainty over whether international creditors will extend loans to Greece.
Oil traders were awaiting fresh weekly information on U.S. stockpiles of crude and refined products to gauge the strength of oil demand in the world’s largest oil consumer.
The American Petroleum Institute will release its inventories report later in the day, while Thursday’s government report could show crude stockpiles rose by 1 million barrels last week.
The data is released a day later than usual due to the Columbus Day Holiday in the U.S. on October 8.
The U.S. is the world’s biggest oil consuming country, responsible for almost 22% of global oil demand.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for November delivery added 0.15% to trade at USD114.67 a barrel, with the spread between the Brent and crude contracts standing at USD21.54 a barrel.
London-traded Brent prices have been drawing support from a combination of lingering concerns over a disruption to supplies from the Middle East and worries over declining production in the North Sea-region.