Oil surges past $112 as tensions mount in Middle East

Oil surges past $112 as tensions mount in Middle East

Posted:
  • NationalMore>>

  • Ex-governor's corruption trial focuses on marriage

    Ex-governor's corruption trial focuses on marriage

    Wednesday, July 30 2014 5:07 AM EDT2014-07-30 09:07:10 GMT
    When former Virginia Gov. Bob McDonnell and his wife, Maureen, were indicted on corruption charges in January, the couple stood together at a hastily called news conference to denounce the charges.More >>
    When former Virginia Gov. Bob McDonnell and his wife, Maureen, were indicted on corruption charges in January, the couple stood together at a hastily called news conference to denounce the charges.More >>
  • US appeals court blocks Mississippi abortion law

    US appeals court blocks Mississippi abortion law

    Wednesday, July 30 2014 4:36 AM EDT2014-07-30 08:36:48 GMT
    Mississippi's governor and attorney general will have to decide whether to challenge a federal appeals court ruling that is keeping the state's only abortion clinic in business.More >>
    Mississippi's governor and attorney general will have to decide whether to challenge a federal appeals court ruling that is keeping the state's only abortion clinic in business.More >>
  • Last crew member of Enola Gay dies in Georgia

    Last crew member of Enola Gay dies in Georgia

    Wednesday, July 30 2014 4:28 AM EDT2014-07-30 08:28:53 GMT
    The last surviving member of the crew that dropped an atomic bomb on Hiroshima once said he thought the bombing was necessary because it shortened the war and eliminated the need for an Allied land invasion that...More >>
    The last surviving member of the crew that dropped an atomic bomb on Hiroshima once said he thought the bombing was necessary because it shortened the war and eliminated the need for an Allied land invasion that could have...More >>
By PAMELA SAMPSON
AP Business Writer

BANGKOK (AP) - The price of oil ricocheted Wednesday as the U.S. edged closer to intervening in Syria's civil war, surging past $112 a barrel before giving up most of those gains.

U.S. Defense Secretary Chuck Hagel said Tuesday that American forces were ready to act on any order by President Barack Obama to strike Syria in response to the alleged use of chemical weapons in the conflict.

U.S. benchmark oil for October delivery was up 79 cents to $109.80 a barrel at late afternoon Bangkok time in electronic trading on the New York Mercantile Exchange. Earlier in the day, oil rose as high as $112.24.

Oil prices jumped $3.09 to close at $109.01 a barrel on the Nymex on Tuesday. Still, the price remains far below its record close of $145.29 a barrel, reached on July 3, 2008.

The price of oil is has surged more than 15 percent in the last three months on concerns over the civil war in Syria and unrest in Egypt. Neither country is a major oil exporter, but traders worry that the violence could spread to more important oil exporting countries or disrupt major oil transport routes.

"Syria's political-economic-military links to Iran, Hezbollah and Russia underline the threat of unintended chain-reaction resulting in wider regional instability. Threat of supply disruption is not insignificant," said Vishnu Varathan of Mizuho Bank Ltd. in Singapore in a market commentary.

Brent crude, the benchmark for international crudes, jumped 85 cents to $115.21 a barrel on the ICE Futures exchange in London.

In other energy futures trading on Nymex:

  • Heating oil added 0.9 cent to $3.174 per gallon.
  • Natural gas was steady at $3.534 per 1,000 cubic feet.
  • Wholesale gasoline rose 1.6 cents to $2.929 per gallon.

Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Powered by WorldNow

1306 N. Broadway NE Knoxville,
Tennessee 37917

Telephone: 865.637.NEWS(6397)
Fax: 865.525.4091
Email: newsroom@wate.com

Can’t find something?
Powered by WorldNow
All content © Copyright 2000 - 2014 Young Broadcasting of Knoxville, Inc. A Media General Company.