Oil climbs on regional uncertainty
Despite plunge in oil prices, the company was making profits due to its unique business model, said officials. In the last ten years, PARCO has made payments of Rs600 billion to the government on account of dividends and various taxes and levies. PHOTO: FILE
Oil prices rose by nearly 2% on Monday on increased geopolitical risk after the fall of Syrian President Bashar al-Assad, and as top importer China flagged its first move towards a loosened monetary policy stance since 2010.
Brent crude futures were up $1.34, or 1.9%, to $72.46 per barrel at 1625 GMT. US West Texas Intermediate (WTI) crude futures were up $1.5, or 2.23%, to $68.70.
"Events in Syria over the weekend could impact the crude market and increase the geopolitical risk premium on oil prices in the weeks and months to come amid yet more instability in the Middle East region," said Jorge Leon, Rystad Energy's head of geopolitical analysis.
While Syria is not a major oil producer, it holds huge geopolitical clout due to its location and ties with Russia and Iran, and mixed with the tensions elsewhere in the region, the regime change has the potential to spill over into neighbouring territories, Leon said. In early signs of disruptions in oil market, a tanker carrying Iranian oil to Syria turned round in the Red Sea to head away from its original destination, ship tracking data showed.
Meanwhile, China will step up "unconventional" counter-cyclical adjustments, focusing on expanding domestic demand and boosting consumption, state media Xinhua reported, citing a readout of a meeting of top Communist Party officials, the Politburo.