After the news of possible US attack on Syria, the oil prices firmed up and stock markets across the world witnessed decline. However, Syria itself is not a major issue for the oil prices to rise. Syria has been producing only 50,000 barrels per day of oil and those are refined in domestic market for their own use.
Syria is not a major oil producing country and due to sanctions placed, the country is not exporting oil since 2011. Syria was mainly exporting oil to Europe before the sanctions. In current market scenario, the attack on Syria will not have any impact on oil supplies and should not have any impact on oil prices as well.
Stock markets reacted to news of Syria attack due to wider issues arising out of the US and allied forces attack on the country. Additionally, there could be further tensions due to US attack. Stock markets across Asia and Europe were trading down. Syrian government has said that rebels used chemical attack to spark strikes. The chemical warfare attack last week killed hundreds of people in Syria and United Nations team is probing the matter.
The oil prices have many other reasons to rise. The economic recovery in Europe and China could lead to more demand and has helped the oil prices. Overall improvement in major world economies have led to increase in oil prices.
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