Oil prices increased in early Asian trading this morning after the fall of Syrian President Bashar al-Assad introduced greater uncertainty in the Middle East. Gains, however, were limited by weakening demand prospects for the upcoming year, according to Reuters.

• Brent crude futures, the European benchmark, rose by 36 cents, or 0.51%, to .48 per barrel.
• U.S. West Texas Intermediate (WTI) crude climbed by 38 cents, or 0.57%, to .58 per barrel.

Political Developments in Syria

On Sunday, Syrian rebels announced on state television that they had overthrown President Assad, ending more than 50 years of rule by his family.

“This development in Syria has added a new layer of political uncertainty in the Middle East, providing some support for prices,” said Tomomichi Akuta, a senior economist at Mitsubishi UFJ Research and Consulting.

Market Adjustments

Meanwhile, Saudi Aramco, the world’s largest oil exporter, has reduced its January 2025 prices for Asian buyers to their lowest level since early 2021. This move comes amid weak demand from China, the largest oil importer.

OPEC+ Decisions

On Thursday, the Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, postponed the start of increased oil production by three months, pushing it to April. Additionally, they extended the full reversal of production cuts by one year, now set to conclude at the end of 2026.