• 3 minutes Shale Oil Fiasco
  • 7 minutes "Leaked" request by some Democrats that they were asking Nancy to coordinate censure instead of impeachment.
  • 12 minutes Trump's China Strategy: Death By a Thousand Paper Cuts
  • 16 minutes Global Debt Worries. How Will This End?
  • 16 hours americavchina.com (otherwise known as OilPrice).
  • 15 hours Democrats through impeachment process helped Trump go out of China deal conundrum. Now Trump can safely postpone deal till after November 2020 elections
  • 1 min Greta named Time Magazine "Person of the Year"
  • 40 mins DUMB IT DOWN-IMPEACHMENT
  • 7 hours POTUS Trump signs the HK Bill
  • 1 day Iraq war and Possible Lies
  • 1 day READ: New Record Conoco Eagleford Vintage 5 wells, their 5th generation test wells . . . Shale going bust . . . LAUGHABLE
  • 11 hours Everything you think you know about economics is WRONG!
  • 1 day Forget The Hype, Aramco Shares May be Valued At Zero Next Year
  • 5 hours Winter Storms Hitting Continental US

Breaking News:

Giant Oil Trader Sets Record Year In 2019

Alt Text

Should Chevron Walk Away From The Anadarko Deal?

Chevron and Occidental are facing…

Alt Text

The Billion Dollar Bet On An Oil Price Crash

Mexico’s billion dollar oil hedge…

Daniel J. Graeber

Daniel J. Graeber

Daniel Graeber is a writer and political analyst based in Michigan. His work on matters related to the geopolitical aspects of the global energy sector,…

More Info

Premium Content

Syrian War Causes Oil Market Jitters

Crude oil prices rebounded to above the $100 per barrel mark last week on concerns the Syrian crises may be entering a new international phase. The U.S. government said it suspects at least 100 people were killed by chemical weapons attacks by pro-government forces in Syria. Gulfsands Petroleum, one of the last company's holding on to any sort of hope for Syria, suspended operations there more than a year ago. Syria was never a major factor in terms of global oil supplies, though any new military phase could spark financial concerns for the region.

Crude oil futures last week tipped the $100 per barrel scale following concerns over a possible international military intervention in Syria.  U.S. Deputy National Security Adviser for Strategic Communications Ben Rhodes said there was strong evident of the use of chemical weapons by Syrian government forces, evidence that he said would change the "calculus" of the international involvement in the Syrian civil war

Related article: Open Season on Syria’s Civil War

The U.S. Energy Department suspects the Syrian government lost out on close to $3 billion in oil revenue because of civil war.  Western opponents of the regime of Syrian President Bashar Assad have eased some restrictions on Syria to allow "oil-related transactions" for the benefit of the Syrian people. It's unlikely the Syrian industrial sector is very active, however, suggesting any oil benefits would be miniscule.  As of October, the government said around $220 million worth of damage has been caused to energy infrastructure.

Syrian oil production is down more than 50 percent since conflict began in March 2011. The latest assessment of the oil sector said any future exploration in the country is next to impossible until the conflict ends. With Western allies mulling a no-fly zone over Syria in response to U.S. chemical weapons claims, investors are getting nervous. The United Nations already said it wants to prop up the peacekeeping force monitoring a cease-fire between Israel and Syria after Austrian forces pulled out because of security concerns. While Turkey is pre-occupied with domestic unrest, it's made its frustration with the Syrian situation loud and clear.

Related article: Assad is Back, and Syrian Peace Will Be on His Terms

But Syria is no Libya. One of North Africa's top oil producers was more or less shut out of the market when NATO forces intervened in response to war crimes allegations against Libya's Moammar Gadhafi. The International Energy Agency called for the release of strategic petroleum reserves to offset 2011 market disruptions from Libyan civil war. The IEA explains that hurricanes and disruptions from civil unrest are the primary reasons for strategic oil reserve release. The IEA called for strategic oil reserves in response to the first Iraq War in 1991, Hurricanes Katrina and Rita in 2005 and in response to Libyan disruptions. Any new military phase in the Syrian civil war is likely to have international spillover effects. But for the oil sector, it's likely just a case of the jitters.

By. Daniel J. Graeber of Oilprice.com




Download The Free Oilprice App Today

Back to homepage



Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play