Oil rises from biggest drop in 3 months

Oil rebounded in New York after dropping the most in more than three months as tension between Syria and Turkey fanned concern that exports from West Asia might be reduced.

Futures advanced as much as 0.7 per cent as Turkey fired into Syrian territory for a second day and called for United Nations intervention. The euro gained against the dollar before a European Central Bank meeting, boosting the appeal of commodities. Oil plunged 4.1 per cent yesterday after the Energy Department reported that US crude production climbed to the highest level in 15 years, while fuel usage decreased.

“Turkey-Syria jitters are adding to general concerns in West Asia,” said Andrey Kryuchenkov, an analyst at VTB Capital in London, who correctly predicted crude would fail to advance last month. “There’s some buying on the lows after losses yesterday, and the greenback is also a touch lower.”

Crude for November delivery gained as much as 62 cents to $88.76 a barrel on the New York Mercantile Exchange and was at $88.44. Futures dropped to $88.14 yesterday, the lowest settlement since August 2. Prices are down 11 per cent this year.

Brent oil for November settlement added 68 cents at $108.83 a barrel on the London-based ICE Futures Europe exchange. The European benchmark crude was at a premium of $20.38 to WTI, up from $20.03 yesterday.

Saudi Arabian Oil Minister Ali Al-Naimi, speaking at a conference in Ankara, Turkey, reiterated views there was no difficulty with oil supply and additional demand can be met. Oil prices were “very high” this year and the kingdom is working to keep them at a “reasonable level,” Al-Naimi said.

Lawmakers convened in Ankara for an emergency debate to grant PM Recep Tayyip Erdogan’s government a one- year mandate for possible military incursions into Syria.

Turkish artillery units fired three salvos at Syrian military targets this morning, CNN-Turk reported.

Syria’s uprising has escalated into a conflict that’s spilling across its borders, with shells and gunfire now following tens of thousands of refugees into Turkey, Lebanon and Jordan.