Oil hits six- month high

Oil prices hit a six-month high as shares fall on fears of a military attack on Syria. Especially emerging markets assets were hit hard and world shares slid for a second day in row. Investors were seeking safe haven investments and gold has been back to shine over the last days. Gold prices reached USD 1430, but fell back to 1418 an ounce try. Brent crude reached USD 117 a barrel on Wednesday morning, but fell back to 115  levels.

Neighbouring Turkey which has stated its willingness to support a military action against the Assad-regime without approval from the UN security Council, is one of the emerging markets hardest hit by the uncertainty. Both the Turkish lira and Indian rupee fell to new record lows against the dollar. The USD has traded steady against the Euro at 1.3336 , but has fallen below 98 yen a dollar against the Japanese yen trading at 97,63.

Even if the real effects on the markets on an eventual  hit against Syria remain uncertain, oil analysts are speculating that oil prices could jump as high as USD 125 a barrel. New York crude, NYMNEX, was trading at the highest level seen in a year when it jumped to USD 111. It has since fallen back to below USD 110.

Worries over Syria largely shrugged off investor’s concern about euro zone bank lending contracting in July. This highlighted the euro zone’s nascent recovery and might keep pressure on the European Central Bank (ECB) to maintain an expansive monetary policy. The British pound slipped both against the dollar and the Euro. Bank of England reaffirmed its attention to keep interest rates low until 2016.  A condition for a ra rise in interest rate is accordning to new Governor, Mark Carney, that unemployment falls to 7 %%, a similar goal set by the US FED.

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