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Missile Threats Push Oil to Highest Price Since 2014

April 11, 2018 at 16:24 by Matt Jackson

The whole commodity market has risen on the increasingly aggressive threats being exchanged between Trump and Putin, with oil taking the lead and posting its highest prices since 2014.

The two presidents have been exchanging angry words ever since Trump announced that he would take decisive action against Syria for the alleged gas attack that killed dozens of Syrian citizens. POutin responded by saying that any missiles fired against Syria would be shot down and the base of origin would be fired on.

Trump is fighting a war of words on multiple fronts. His rhetoric with China’s President Xi Jinping, over tariffs proposed by both sides, and sanctions imposed against Russian businessmen and government officials, mean that the divisive president is never far from the front pages. However, proposed action against the Syrian President Bashar al-Assad’s government has caused the most tension.

Russia, who are military allies to al-Assad’s regime, have made it clear that they will step in to defend their allies. Putin said that they would shoot down any missiles and would target the missile bases that they were fired from. Trump’s response, which came via Tweet, read:

Russia vows to shoot down any and all missiles fired at Syria. Get ready Russia, because they will be coming, nice and new and “smart!” You shouldn’t be partners with a Gas Killing Animal who kills his people and enjoys it!

Oil prices had already started to improve at the beginning of the week as Trump’s ongoing trade war battle with China had appeared to calm a little. Following the potential of war between the USA and Russia, and missiles being fired at Syria, oil prices rose even further, surpassing previous 2018 highs and reaching their highest price since 2014.

Brent crude prices reached $72.47, an increase of 2.01% while WTI crude prices increased 2.37% to reach $67.06 per barrel at 17:00 GMT on Wednesday. Aluminum, which reached its highest price in 6 years, and gold prices are also reported to have risen.

The only minor concern for oil was the announcement made, by the Energy Information Administration (EIA), that crude inventories rose by 3.3 million barrels per week. The rise was double the amount predicted by API, and would normally lead to a dip in prices, but the announcement is expected to have little impact on today’s rates.

If you have any questions and comments on commodities today, use the form below to reply.

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