Regime change in Syria sends oil prices on a rollercoaster
The fall of Bashar al-Assad, who had been in power in Syria for nearly 25 years, impacted oil prices. The sudden change in the Middle East is a blow to Russia and Iran, which support the regime. Traders are accounting for the effects of the rebels taking power, leading to a rise in oil markets.
At the opening of the exchanges on Monday, the price of the popular Brent crude increased to $72 per barrel, while the American West Texas Intermediate exceeded $67. The noticeable reaction in the markets resulted from traders factoring in the effects of the coup in Syria.
Bloomberg reported on Monday that the collapse of Bashar al-Assad's regime has left a power vacuum, sparking competition among various factions and raising the risk of intensified violence. The region remains mindful of the recent turmoil in Libya and Iraq, where the removal of long-standing leaders led to even greater instability.
The events in Syria also impact the two main allies of Assad's regime: Russia and Iran, weakening their positions. This is significant because they are important oil producers.
Nevertheless, the uncertainty caused by the upheaval in Syria and the takeover of power by HTS, the Islamist group Hayat Tahrir al-Sham led by Abu Muhammad al-Julani, and the Syrian National Army, along with the situation on the front in Ukraine, was balanced by weak demand for oil products in China and high supply in the markets.
As a result, the increase in oil prices was limited. As Bloomberg points out, some players are lowering prices for certain regions, such as Saudi Aramco, which reduced them for Asia.
