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Oil Rises on Syrian Tensions| News by Staff Reporter
The price of crude-oil has risen to a 6-month high on fears that an invasion of Syria by Western forces is imminent.
Brent crude rose to over $117, the largest daily gain this year, in the wake of announcements by Western officials that armed forces were ready to proceed with an attack.
This was after news of alleged chemical attacks in Syria made headlines.
Although Syria is not a major oil producer, there are fears that regional conflict may destabilize oil production in countries such as Iraq, the second largest oil producer in the world.
Military action may also create higher than usual demand for oil.
French bank, Socgen, has forecast a new base price of $125 for Brent crude if an attack occurs within the next week, rising to $150, if the conflict results in supply disruptions in Iraq.
Stock markets around the world reacted negatively, with all the major bourses in Asia, America and Europe, in the red.
To compound anxieties, emerging market currencies have lost value against the U.S. dollar, increasing the price of their oil imports.
The Indian rupee has lost thirty percent of it's value this year, and now hitting new lows, while the Rand has fallen to R10.50 against the dollar, it's lowest value in four years.