Brent futures rose above $115 a barrel on Thursday as the US war rhetoric against Syria has increased.
Brent crude rose 21 cents to $115.12 by 0224 GMT, after ending 77 cents lower, Reuters reported. And US oil price increased by 25 cents to $107.48. The rise in prices comes as US President Barack Obama’s efforts to win domestic and international backing for a military strike against Syria cleared its first hurdle on Wednesday after a US Senate panel gave the green light to the White House. Experts say the increasing war rhetoric would further boost the demand outlook for oil. A new war in the Middle East, they warn, could even get regional oil producers dragged into the conflict. "If you take it that the United States will attack, the key question remains what happens after that? Will it stay limited or will Syria's neighbors get dragged in," Reuters quoted Ric Spooner, chief market analyst at CMC Markets as saying. Syria is not a big oil producer but it’s located in an oil-rich region, and investors are worried that a US strike there may spread across the region, which pumps a third of the world's crude. Nearly three million bpd of crude oil have already been suppressed by outages in the Middle East and Africa. That is about 3.5 percent of global demand. The Senate Foreign Relations Committee voted 10-7 in favor of a resolution that sets a 60-day limit on a US strike on Syria, with a possible 30-day extension. US accused the Syrian government of using chemical weapons in an August 21 attack on militants who have been fighting the government forces for the past two and a half years. The Syrian authorities categorically rejected allegation.