Tuesday, October 09 14:36:53
Oil rose to around $113 a barrel today after two days of losses, with tensions in the Middle East and the risk of supply disruptions outweighing concerns about sluggish global demand.
Turkish President Abdullah Gul said on Monday the "worst-case scenarios" between his country and Syria were now playing out, fuelling concerns that the 18-month-old conflict in Syria may spread to other countries in the region.
"It's a political risk premium coming into the market now, not really supported by fundamental data," said Andy Sommer, oil market analyst with EGL in Switzerland.
"If you look at the demand side, prices should be a bit lower than they are currently. But the risk, or fear, that this Turkey-Syria conflict might spread further in the Arab world is increasing that risk premium."
Brent futures rose $1.23 to $113.05 by 1314 GMT. U.S. crude climbed 94 cents to $90.27, also rebounding after two consecutive sessions of declines. (C ) Reuters