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Oil prices push higher after France launches air strikes in Syria

Published 11/16/2015, 04:27 AM
© Reuters.  Crude oil rises after France launches air strikes in Syria
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Investing.com - Oil prices pushed higher on Monday, as France launched air strikes in Syria against the Islamic State (ISIS) following a series of coordinated attacks in Paris on Friday that killed more than 130 people.

Later Monday, political leaders were expected to discuss ways to escalate the war against terrorism and deal with the migration crisis at the annual summit of the Group of 20 nations (G20) in Turkey.

On the ICE Futures Exchange in London, Brent oil for January delivery tacked on 34 cents, or 0.75%, to trade at $44.81 a barrel during European morning hours. Brent touched $44.16 on Friday, the weakest level since August 26.

Gains were limited as mostly bearish outlooks for supply and demand and for the global economy remained on investors' minds.

London-traded Brent futures plunged $3.85, or 8.03%, last week, the largest weekly loss since March, as ongoing worries over the health of the global economy fueled concerns that a global supply glut may stick around for longer than anticipated.

Elsewhere, crude oil for delivery in December on the New York Mercantile Exchange rose 39 cents, or 0.95%, to trade at $41.13 a barrel. Nymex prices fell to $40.22 on Friday, the lowest since August 27.

New York-traded oil futures lost $3.78, or 8.02%, last week, the biggest weekly drop in eight months, after data showed that oil supplies in the U.S. rose for the seventh consecutive week, remaining near levels not seen for this time of year in at least the last 80 years.

Industry research group Baker Hughes (N:BHI) said late Friday that the number of rigs drilling for oil in the U.S. increased by 2 last week to 574, the first weekly rise in almost three months.

The oil market has been on the defensive in recent months amid uncertainty about how quickly the global glut of crude is set to shrink.

Worries over a stronger U.S. dollar, prospects of higher interest rates in the U.S. next month and concerns over weakening demand from China also weighed.

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