Oil prices are rising amid political instability in Syria

On Monday, oil prices jumped after reports of the overthrow of Syrian President Bashar al-Assad by the opposition, which increased fears of an escalation of instability in the Middle East. Brent futures rose by 1.17%, reaching $72 per barrel, and WTI – by 1.32%, to $68.20.

Traditionally, any geopolitical aggravation supports the oil market, but the recent price cuts by Saudi Arabia and the extension of OPEC+ production cuts may weaken the market at the end of the year, as these actions indicate a reduction in demand from China.

Saudi Aramco has lowered prices for Asian buyers to the lowest level since the beginning of 2021. And OPEC+ at a meeting on Thursday postponed the increase in production until April and extended the reduction until the end of 2026. Production growth in the United States, meanwhile, is growing – the number of drilling rigs in the United States has reached its highest since mid-September.

Despite the oversupply in 2025, prices for Brent and WTI declined for two weeks in a row. Investors are preparing for a report on inflation in the United States, which may affect the Fed's policy. Analysts also warned that even with a possible Fed rate cut, concerns about a global economic slowdown will remain relevant.