Top > Business > 2006 > September > 2006-09-14

Oil Prices Rise after Embassy Attack

European stocks and oil prices fell all of a sudden on Tuesday following an attack on the U.S. embassy in Syria. However, the dollar peaked at a two-month high against the Japanese yen, after disappointing data from Japan`s economic outlook was released. The gold standard, and Swiss franc, like the dollar also posted higher results after gunmen tried - and failed - to harm diplomats at the U.S. embassy in the Syrian capital of Damascus.

In terms of oil prices, Mike Coleman, a partner with Singapore-based hedge fund Aisling Analytics, saud, "Crude prices are looking very overvalued and oversupplied as we move into the autumn, when refinery turnarounds are usually planned in the United States and Europe." U.S. light crude traded on September 12 at $66.30 per barrel, a gain of over 1% but still representing a loss of 12% over the past month.

In Tokyo, the Nikkei average fell 0.5% to finish at 15,719.3 points on Tuesday, falling to a one-month low, with the downturn reportedly triggered by weak commodities prices. In London, the FTSEurofirst 300 index was 0.4 percent higher, at 1,355.0 points in late morning trading, although this percentage was lower in early trading hours.