Oil rises 3% on geopolitical risk

By FXStreet FXStreet (Mumbai) – Oil prices at both the sides of the Atlantic rose 3% after news that Turkey shot down what is likely to be a Russian jet over Syria opened doors for a technical correction.

At the time of writing, WTI crude Jan futures were up 3% or $1.36 at USD 43.10/barrel. Brent Jan futures were up 3% or $1.39 at USD 46.22/barrel.

Russia’s Putin later confirmed that the plane shot over Turkey/Syria border was Russian jet. The news acted as a trigger for technical correction and also carried geopolitical risk premium along with it. Meanwhile, a softer USD index also added to the bullish move in oil prices.

Traders are now eyeing the weekly US crude inventories data, released by the American Petroleum Institute (API), an industry group. The official data by the US Energy Information Administration will be published on Wednesday.
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Source:: FX Street