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Oil prices rise on heightened Middle East tensions

“Oil futures traded higher early Wednesday, buoyed by concerns about rising tensions in the Middle East that could result in supply disruptions” writes Sarah Mcfarlane for marketwatch.com. Those factors, which are supportive for energy futures, has helped deliver a jolt to the energy complex broadly.Still, the analyst cautioned that the current rise for oil may be limited due to expected U.S. production. “However with the U.S. oil production set to rise further in the coming months, the global oil market will likely remain amply supplied in the long-term.Renewed conflict in the Middle East, which could also draw a response from Syrian ally Russia, could hinder oil output and weigh down global supply, analysts say.We therefore think that oil prices will struggle to rise significantly further, although in the short-term price spikes are possible given the heightened possibility of military action in Syria,” Razaqzada wrote.
Source: marketwatch.com

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