Oil prices rose on December 9 after reports of the downfall of Syrian President Bashar al-Assad’s regime. This event caused significant political uncertainty in the Middle East, a key region for the global energy market.
Oil Price Dynamics
The Brent crude oil price increased by 0.51%, reaching $71.48 per barrel. The American West Texas Intermediate (WTI) rose by 0.57% and cost $67.58 per barrel. These changes occurred against the backdrop of escalating tensions in the region, which is already plagued by long-standing conflicts.
Economists note that the political tension in Syria adds an extra layer of uncertainty for investors. As Tomomichi Akuta, a senior economist at Mitsubishi UFJ Research and Consulting, pointed out, “the events in Syria are providing temporary support to the market, although the forecast of decreased demand remains a significant restraining factor.”
Saudi Arabia and OPEC+
Amid these events, Saudi Aramco, the largest crude oil exporter, reduced prices for Asian buyers to a minimum since 2021 due to weakened demand from China. Meanwhile, OPEC+ countries decided to postpone the increase in oil production for three months, extending production limits until the end of 2026.
These measures are aimed at supporting oil market stability amid falling demand and escalating political risks in the region.
US: Oil and Gas Production
In the United States, the number of drilling rigs reached a record level since mid-September, indicating an uptick in production. The US remains the world’s largest oil producer, and this trend plays a significant role in shaping global energy resource prices.
The rise in oil prices following the fall of the Assad regime demonstrates how fragile the balance is in the global energy markets. While economic factors such as decreased demand continue to impact the market, political instability in strategically important regions remains a significant risk for the global economy.
