I found this article, by Reuters, quite informative and with a highly analytical perspective…the kind of reading I like. It brings up some very interesting possible influences on oil prices. Also, I will need a refresher on why “Brent oil” wold go up on Syria worries, and not be effected by US crude supply build. (The article also talks about hurricane worries and its affect on prices.)
Here is an excerpt:
By Barani Krishnan
NEW YORK (Reuters) – Oil prices were mixed in volatile trade on Wednesday, with global benchmark Brent up on worries about Russian airstrikes in Syria but U.S. crude down after data showed a surge in domestic inventories.
Oil prices were broadly boosted in early trade by concern about a hurricane threatening energy infrastructure on the U.S. East Coast. Book balancing by traders at the end of the month and the third quarter also made for choppy trade.
“It’s the typical month-end, quarter-end ‘window dressing’ phenomenon,” Tariq Zahir, a fund manager in oil at Tyche Capital Advisors in Laurel Hollow, New York, said, noting that similar action at end-August resulted in an 8 percent price rally.
Warplanes from Russia carried out air strikes against Islamic State targets in Syria, feeding worries about growing war in the Middle East.
The U.S. National Hurricane Center said it expected Hurricane Joaquin to reach the Bahamas on Wednesday night. The storm might move north to threaten the New York Harbor, delivery point for the U.S. gasoline and ultra low sulfur diesel futures contracts.
“High seas along the East Coast have been forecast and that could affect barges carrying refined products,” said David Thompson, executive vice-president at Washington-based commodities broker Powerhouse.