A strike on Syria would at least temporarily boost oil prices on fears of violence spreading across the Middle East. But production problems elsewhere in the Middle East and Africa are keeping energy markets on edge.
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The possibility of a military strike on Syria has investors worried an attack could spread trouble across the Middle East and cut off oil supplies. But, for the first time in 50 years, the US is not as worried about disruptions to the oil markets, resulting from a possible military strike on Syria, as domestic production is at a 20-year high.
With oil prices jumping at the thought of a looming military strike on Syria, it’s worth recalling what a back-up supply from the US Strategic Petroleum Reserve can and can’t do, Styles writes. The reserve could prove extremely helpful should a military strike on Syria occur.
A possible military strike on Syria pushed up gasoline prices Thursday by 1.8 cents a gallon, the biggest one-day jump in a month. But they're still 27 cents below the Labor Day price last year and prospects of a delay in a military strike on Syria may keep them from rising much during the big driving holiday.