Investing.com - Crude oil futures were mildly higher during European morning hours on Tuesday, as growing concerns over escalating tensions between Syria and Turkey supported prices, however gains were limited amid ongoing concerns over the health of the global economy.
On the New York Mercantile Exchange, light sweet crude futures for delivery in November traded at USD89.96 a barrel during European morning trade, adding 0.7%.
Earlier in the day, prices rose by as much as 1% to hit a session high of USD90.33 a barrel.
Oil prices found support after Turkish President Abdullah Gul said Monday that the worst case scenario between his country and Syria are now playing out, fuelling concerns that the conflict in Syria may spread to other countries in the region.
Countries in the Middle East and North Africa were responsible for 36% of global oil production and held 52% of proved reserves in 2011.
Hopes for fresh easing measures from the Chinese central bank also contributed to gains after the People’s Bank of China injected CNY265 billion into the money market, in a bid to ease tight liquidity conditions.
The move raised optimism for further supportive policy measures out of China, the world’s second largest oil consumer after the U.S.
But gains were limited after the International Monetary Fund cut its 2012 global growth forecast earlier in the day and warned of even slower expansion unless officials in the U.S. and Europe address threats to their economies.
The IMF said that the world economy will grow 3.3% this year, the slowest since the 2009 recession, and 3.6% next year, compared with July predictions of 3.5% in 2012 and 3.9% in 2013.
Market players were also jittery as uncertainty over how soon Spain may formally request a bailout lingered after euro zone finance ministers said Monday that Madrid did not need external financial aid yet.
Later in the day, German Chancellor Angela Merkel was to travel to Athens for talks with Greek political leaders. Meanwhile, finance ministers from the European Union were to conclude a two-day meeting in Luxembourg.
The risk-off trade environment prompted investors to shun riskier assets, such as stocks and commodities and flock to traditional safe haven assets like the U.S. dollar and Treasuries.
The dollar index, which tracks the performance of the greenback against a basket of six other major currencies rose 0.25% to trade at 79.89.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for November delivery gained 0.55% to trade at USD112.64 a barrel, with the spread between the Brent and crude contracts standing at USD22.68 a barrel, the widest level since October 2011.
London-traded Brent prices have been drawing support from a combination of lingering concerns over a disruption to supplies from the Middle East and worries over declining production in the North Sea-region.
On the New York Mercantile Exchange, light sweet crude futures for delivery in November traded at USD89.96 a barrel during European morning trade, adding 0.7%.
Earlier in the day, prices rose by as much as 1% to hit a session high of USD90.33 a barrel.
Oil prices found support after Turkish President Abdullah Gul said Monday that the worst case scenario between his country and Syria are now playing out, fuelling concerns that the conflict in Syria may spread to other countries in the region.
Countries in the Middle East and North Africa were responsible for 36% of global oil production and held 52% of proved reserves in 2011.
Hopes for fresh easing measures from the Chinese central bank also contributed to gains after the People’s Bank of China injected CNY265 billion into the money market, in a bid to ease tight liquidity conditions.
The move raised optimism for further supportive policy measures out of China, the world’s second largest oil consumer after the U.S.
But gains were limited after the International Monetary Fund cut its 2012 global growth forecast earlier in the day and warned of even slower expansion unless officials in the U.S. and Europe address threats to their economies.
The IMF said that the world economy will grow 3.3% this year, the slowest since the 2009 recession, and 3.6% next year, compared with July predictions of 3.5% in 2012 and 3.9% in 2013.
Market players were also jittery as uncertainty over how soon Spain may formally request a bailout lingered after euro zone finance ministers said Monday that Madrid did not need external financial aid yet.
Later in the day, German Chancellor Angela Merkel was to travel to Athens for talks with Greek political leaders. Meanwhile, finance ministers from the European Union were to conclude a two-day meeting in Luxembourg.
The risk-off trade environment prompted investors to shun riskier assets, such as stocks and commodities and flock to traditional safe haven assets like the U.S. dollar and Treasuries.
The dollar index, which tracks the performance of the greenback against a basket of six other major currencies rose 0.25% to trade at 79.89.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for November delivery gained 0.55% to trade at USD112.64 a barrel, with the spread between the Brent and crude contracts standing at USD22.68 a barrel, the widest level since October 2011.
London-traded Brent prices have been drawing support from a combination of lingering concerns over a disruption to supplies from the Middle East and worries over declining production in the North Sea-region.