Money Oil could hit $US80 on back of Syrian air strikes: JP Morgan

11:06  16 april  2018
11:06  16 april  2018 Source:   MSN

Strikes on Syria 'successful', says UK government

  Strikes on Syria 'successful', says UK government "We believe that the strikes had a significant impact".Ms May cast the strike as "limited and targeted" and came after intelligence indicated Syrian dictator Bashar al-Assad's government was responsible for an attack using chemical weapons in the Damascus suburb of Douma a week ago.

TOPICS:Finance JP Morgan Oil . Julia Kollewe Guardian. Chinese demand could push crude to 0 a barrel soon, according to JP Morgan , with the weaker dollar and restocking of French oil inventories once strikes end also helping to drive up oil prices.

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The air strikes in Syria could drive oil prices to over $US80 a barrel.© AP The air strikes in Syria could drive oil prices to over $US80 a barrel.

Oil prices have hit their highest since late 2014 and JP Morgan says Brent crude could go to $US80 a barrel as US-led strikes on Syria threaten a new period of heightened Middle East conflict and raise the spectre of renewed US sanctions on Iran.

The United States, Britain and France on Saturday morning launched military strikes against "chemical weapons-type targets" in Syria, in retaliation for a suspected poison gas attack in the town of Douma which killed at least 60 people on April 7.

Talk of the US-led strikes helped ramp up tension in oil markets leading into the weekend, where geopolitical tensions had already pushed prices higher. In the middle of last week Saudi Arabia intercepted three missiles over Riyadh, reportedly fired by Iranian-backed Houthis in Yemen and targeting national oil company Saudi Aramco's assets.

UN chief urges restraint after strikes on Syria

  UN chief urges restraint after strikes on Syria <p>UN Secretary-General Antonio Guterres on Saturday called for restraint and for countries to avoid any acts that could escalate the situation in Syria after the United States, France and Britain carried out strikes.</p>Guterres delayed a planned trip to Saudi Arabia to deal with the aftermath of the military action.

Oil prices could hit 0 a barrel, JP Morgan predicts. Chinese demand could push crude to 0 a barrel soon, according to JP Morgan , with the weaker dollar and restocking of French oil inventories once strikes end also helping to drive up oil prices.

Oil prices edged higher on Wednesday, adding to steep gains in the previous session, as markets eyed an escalation of Middle East tensions after Europe’s air traffic control agency warned of possible air strikes on Syria in the next 72 hours.

In response, the international benchmark Brent crude oil price lifted 8.6 per cent last week to hit $US72.58 a barrel on Friday night, the highest since November 2014. Asian trade on Monday morning will offer the first glimpse of whether prices will be even higher.

Syria's oil industry has been devastated by war, making it a very minor part of global supply, JP Morgan oil strategist Abhishek Deshpande said. The country produces in the vicinity of about 25,000 to 30,000 barrels per day, against 350,000 bpd to 400,000 bpd two or three years ago. But oil markets remained sensitive to any developments in the oil-rich Middle East, Mr Deshpande said.

"The fact is that Syria is in the middle of a very high oil-producing region."

Analysts believe chances are rising that US President Donald Trump on May 12 will choose not to recertify his country's waiver on sanctions on Iran, which, alongside Russia, is backing Syrian President Bashar al-Assad.

70 civilians killed in Syria strikes - report

  70 civilians killed in Syria strikes - report Another 30 civilians were killed by Syrian regime airstrikes in the besieged area of eastern Ghouta on Saturday, a monitor has reported. It adds to the 40 reported dead by the UK-based Syrian Observatory for Human Rights on Friday.The deaths come as Syrian forces renew their attack on the area - specifically the opposition holdout of Douma.It was hoped a deal had been struck to allow fighters to withdraw from the area, which has been dubbed "hell on Earth" because of the conditions in which people live.

Meanwhile, Saudi Arabia — which is said to be aiming for oil near US $ 80 to pay for its own crowded policy agenda — is planning to sign a deal to participate in a refinery on India’s west coast as Aramco may take a 50% equity stake in the project and can bring in another strategic investor, the person said.

Oil prices hit a new high closing price of 76.70 US dollars a barrel on Thursday as international tension heightened in several fronts with analysts not ruling out 80 US dollars a barrel in the coming days. The escalating conflict in Middle East; Iran's nuclear row heading back to the UN Security Council; North

Further sanctions anticipated

"The suspected chemical weapons attack in Syria has heightened the chance that the US will impose further sanctions on Russia and reimpose them on Iran," Capital Economics commodities economists warned clients.

The Trump administration on April 7 imposed new sanctions on seven of Russia's richest men and 17 top government officials in the latest effort to punish President Vladimir Putin's inner circle for interference in the 2016 election and other Russian aggressions.

Mr Deshpande agreed that reinstated Iranian sanctions next month were a risk for markets, albeit one that was likely already largely priced in by markets and so would only add $US2 to $US5 to oil prices. The greater risk, he said, was that Europe also reimposed sanctions alongside the US, a scenario that would push crude "at least towards $US80, if not more".

While "definitely not a good thing" for markets already struggling with an array challenges, a 10 per cent climb in crude this year and a 25 per cent rise year-on-year "isn't the kind of stuff that qualifies as an oil shock by any standard", JP Morgan head of cross-asset strategy John Normand said.

Morgan wants 'a clinic' from Thurston

  Morgan wants 'a clinic' from Thurston North Queensland half Michael Morgan hopes Cowboys teammate Johnathan Thurston 'puts on a clinic' after being critiqued as playing one NRL season too many.Michael Morgan hopes Canterbury feel the backlash as North Queensland's ageing superstar Johnathan Thurston stews over fears he may have played one NRL season too many.

SEE ALSO: Oil prices near 2014 highs on likely Syria air strikes . So far, Moscow has backed Riyadh, at least in public, with Russian Energy Minister Alexander Novak saying that the alliance between the cartel and Russia that coordinated historic oil -output cuts could last "indefinitely".

The United States and its allies are considering air strikes against Syrian President Bashar Pan-European air traffic control agency Eurocontrol said air -to-ground and/or cruise missiles could be US crude hits highest since 2014 on missile concerns. Saudi Arabia said to signal ambition for US $ 80 oil

Another leg higher to $US80 or higher in crude prices would, however, "prevent risky markets from making the gains they deserve to make in the second quarter," Mr Norman said.

"Whilst the risks to oil supply from possible sanctions on Iran or Russia and from damage to oil infrastructure are significant, we still expect the market to be in surplus this year and the recent surge in prices is only likely to incentivise further increases in drilling rigs and output, especially in the US," the Capital Economics team said.

Mr Deshpande, however, doubted that US shale would be able to respond sufficiently to fill the shortfall in supply, while OPEC countries would be "slow to respond". That would see oil prices "remaining higher towards the end of the year".

Nearly 500,000 have been killed in the long-running Syrian conflict, while the Yemen civil war has left an estimated 10,000 dead since it began in 2015.

Morgan wants 'a clinic' from Thurston .
North Queensland half Michael Morgan hopes Cowboys teammate Johnathan Thurston 'puts on a clinic' after being critiqued as playing one NRL season too many. Michael Morgan hopes Canterbury feel the backlash after North Queensland superstar Johnathan Thurston came in for scathing criticism for his unusually slow start to the NRL season.Former Test half Greg Alexander, now a NSW State of Origin advisor to new Blues coach Brad Fittler, claimed Thurston was "looking like someone that's possibly played the game a little bit too long" during the Cowboys' 22-12 loss to the Warriors last Saturday.

Source: http://au.pressfrom.com/news/money/-60893-oil-could-hit-us80-on-back-of-syrian-air-strikes-jp-morgan/

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