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ENERGY TECH
Oil prices rise after Israeli air strikes on Syria
by Staff Writers
New York (AFP) May 6, 2013


Oil prices climbed Monday after Israeli air strikes in Syria raised fresh concerns about rising tensions in the oil-rich Middle East.

The main US futures contract, West Texas Intermediate crude for delivery in June, closed at $96.16 a barrel on the New York Mercantile Exchange, up 55 cents from Friday's closing level.

The European benchmark, Brent North Sea crude for June delivery, soared $2.61 from Friday to settle at $105.46 on the Intercontinental Exchange in London.

"The market moved back up with concerns in the Middle East -- with growing tensions between Israel and Syria," said Bill Baruch of iiTrader.com.

A senior Israeli source confirmed to AFP that the Jewish state had carried out a pre-dawn attack on a site outside Damascus on Sunday, in the second such attack in 48 hours, both of which had targeted weapons destined for Lebanon's Hezbollah.

Syrian officials warned in response that "missiles are ready" to retaliate.

Oil prices pulled back from an initial jump because there was no immediate reprisal from Syria or Iran, "just typical rhetoric," said John Kilduff of Again Capital.

For traders, "it seems the situation remains contained," he said.

Tim Evans of Citi Futures pointed out that neither Syria nor Israel has significant oil production or exports.

Kilduff noted "a little bit of profit-taking" in New York after sharp gains Friday driven by a better-than-expected US jobs report for April that inspired hopes for stronger growth in the world's biggest energy consumer.

WTI had climbed $4.58 over the prior two trading sessions.

Brent rallied "generally because of the concern of the Middle East," said Phil Flynn of Price Futures Group.

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