Oil prices rose on Monday amid heightened uncertainty in the Middle East following the fall of Syrian President Bashar al-Assad’s regime.
Brent crude increased by 36 cents to $71.48 per barrel, while U.S. West Texas Intermediate crude gained 38 cents to $67.58 per barrel.
However, the gains were limited by concerns over reduced demand for oil in the upcoming year, according to Reuters.
Syrian rebels declared on state television Sunday that they had ousted President Bashar al-Assad, ending a 50-year family dynasty.
The swift offensive raised concerns of a new wave of instability in a region already plagued by conflict.
“The development in Syria has added a new layer of political uncertainty in the Middle East, providing some support to the market,” said Tomomichi Akuta, senior economist at Mitsubishi UFJ Research and Consulting.
“But Saudi Arabia’s price reductions and OPEC+’s production cut extension last week underscored weak demand from China, indicating the market may soften toward year-end,” he said, noting that investors are watching for early signs of any impact on the markets from U.S. President-elect Donald Trump’s expected energy and Middle East policies.
Saudi Aramco, the world’s largest crude oil exporter, announced on Sunday that it has lowered its January 2025 prices for Asian buyers to the lowest levels since early 2021.
This move comes as weak demand from top importer China continues to impact the market.
On Thursday, OPEC+ announced it would delay the start of oil output increases by three months to April and extend the full rollback of production cuts until the end of 2026.
The group had initially planned to begin unwinding cuts in October 2024, but weaker global demand, especially from China, and rising output from other regions have led to multiple delays. OPEC+ accounts for around half of global oil production.
