Day of Rage in Syria – Oil Jumps
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Day of Rage in Syria – Oil Jumps

This isn’t an April fool’s joke. Friday’s day of prayer is expected to turn into a day of rage, one of the strongest that Syria has seen. Social networks and text messages are utilized by Syrian opposition factors to stage action all over the Bashar al-Assad’s country.

The previous Friday was very bloody – many protesters were killed in the southern city of Daraa, where demonstrations already began earlier this year. The big surprise came on Saturday, as the riots spread to other Syrian cities in including the capital Damascus and the port city of Latkia, the stronghold of the Alawi elite.

President Bashar al-Assad, which inherited power from his father Hafez, has already promised some reforms and a committee to inspect the emergency rule that exists for many decades.

But this doesn’t satisfy the protesters which are now organizing a huge day of rage all across Syria. This could be very violent.

Oil prices rise, dollar endangered

While Syria isn’t a producer of oil, it is an important country in the Middle East. It has many interests in Lebanon, including with Hizballah, the factor which fought Israel in 2006 and destabilized the whole region. It also has moves in Iraq and very tight ties with Iran. The last two are big producers of oil.

And, any instability in one Middle Eastern or North African country, has influence on others as well. The day of rage in Saudi Arabia, the largest producer of oil, sent prices very high, even if the unrest was limited.

WTI Crude Oil now trades at $107.50, the highest level since September 2008. The $107 line served as a barrier in recent weeks. It was reached after the situation in Libya intensified, especially due to the battles in Ras Lanuf. Currently, it seems that the crisis in Libya nears a resolution, as an envoy from Gaddafi arrived in London to discuss an exit strategy for the regime. Will Gaddafi go to Zimbabwe?

Higher oil prices had a big contribution to the weakening of the the US dollar in recent months, and sent the yen higher. This could stop the advance of of USD/JPY. The biggest winner is the Swiss Franc.

The fresh jump of WTI above $107 still doesn’t have an impact on the dollar. This depends on the actual events in Syria and elsewhere in the region, as the people emerge from their Friday prayers.

Yohay Elam

Yohay Elam

Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.