Oil prices climbed on Monday after the fall of Syrian President Bashar al-Assad’s regime introduced greater uncertainty to the Middle East, although the gains were capped by a waning demand outlook for the coming year.
Brent crude futures rose 36 cents, or 0.51%, to $71.48 per barrel by 0513 GMT. U.S. West Texas Intermediate (WTI) crude futures gained 38 cents, or 0.57%, to $67.58 per barrel.
Syrian rebels announced on state television on Sunday they had ousted President al-Assad, eliminating a 50-year family dynasty in a lightning offensive that raised fears of a new wave of instability in a region already gripped by war.
“The development in Syria has added a new layer of political uncertainty in the Middle East, providing some support to the market,” said Tomomichi Akuta, senior economist at Mitsubishi UFJ Research and Consulting.
“But Saudi Arabia’s price reductions and OPEC+’s production cut extension last week underscored weak demand from China, indicating the market may soften toward year-end,” he said.
