Oil prices soared on Wednesday morning after U.S. President Donald Trump tweeted earlier in the day that Russia would better "get ready" for U.S. missiles in Syria.
At 08:33 a.m. EDT on Wednesday, WTI Crude was above $66 and Brent-above the $71 mark. WTI Crude was up 0.92 percent to $66.12, while Brent Crude had jumped 0.87 percent at $71.66.
"Russia vows to shoot down any and all missiles fired at Syria. Get ready Russia, because they will be coming, nice and new and "smart!" You shouldn't be partners with a Gas Killing Animal who kills his people and enjoys it!" President Trump tweeted early on Wednesday, sending oil and gold surging as investors fear potential oil disruptions in the Middle East on the one hand, and flock to safe-haven gold on the other.
Brent oil prices had already rallied past $70 on Tuesday, after Trump's Monday promise to respond "forcefully" to the suspected chemical attack in Syria. Russia responded in kind with threats of repercussions should the United States follow through with military action.
Later on Tuesday, oil prices dipped after the American Petroleum Institute (API) reported a surprise build of 1.758 million barrels of United States crude oil inventories for the week ending April 6, after analysts had anticipated a draw in crude oil inventories of 189,000 barrels. The EIA's weekly inventory report due out at 10:30 a.m. EDT could either help oil prices extend gains or limit the rally and even reverse it if the figures turn out too bearish.
According to RBC's Helima Croft, the oil market attention is now turned more to potential escalation of conflicts in the Middle East-including in Syria and the Saudi-Iran tensions and proxy war in Yemen-rather than to fears of a trade war that have subsided over the past day.
"This geopolitical backdrop is occurring against a tightening market right now," Croft, head of commodity strategy at RBC, told CNBC.
By Tsvetana Paraskova for Oilprice.com
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Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. More
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