“Oil advanced in New York amid concern that escalating tensions between Syria and Turkey may disrupt supplies from the Middle East. Brent’s premium to West Texas Intermediate crude widened to the most in almost a year.
Futures rose as much as 1.2 percent after Turkey seized cargo on a Syrian passenger plane and on unconfirmed reports of the discovery of weapons parts and military communications gear. The Middle East accounts for about 33 percent of world oil supplies, according to BP Plc. The American Petroleum Institute said yesterday that U.S. crude inventories rose 1.6 million barrels last week, and the Energy Department is forecast to report a 1.5 million barrel gain for the period today.
“The unrest between Syria and Turkey is a lit powder keg,” said Michael Poulsen, an analyst at Global Risk Management in Middelfart, Denmark, who predicts Brent crude may advance to $120 a barrel this month. “The general supply-demand situation is balanced, walking a tightrope between weaker growth projections and the risk of supply disruptions.”
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