Tuesday, 09 October 2012 12:29
SINGAPORE: Brent crude futures rose towards $113 a barrel on Tuesday after two days of losses, with supply fears due to escalating tensions in the Middle East prevailing over a sluggish outlook for global demand.
Turkish President Abdullah Gul said on Monday that the worst case scenarios between his country and Syria are now playing out, fuelling concerns that the 18-month old conflict in Syria may spread to other countries in the region.
"Right now the market is concerned about the continuing conflict between Syria and Turkey, and the worry is that if it escalates, it may disrupt supplies," said Ker Chung Yang, senior investment analyst at Phillip Futures in Singapore.
Front-month Brent futures had risen 89 cents to $112.71 per barrel by 0618 GMT. US crude gained 85 cents to $90.18, also rebounding after two consecutive sessions of declines.
Brent's premium to US crude jumped to $22.5 per barrel, the most since Oct. ...