Yesterday [Wednesday 2-Dec-2015] MPs voted 397 to 223 for the extended bombing in Syria. We have heard that the first raid has already happened and it hit the Omar oil fields in eastern Syria.
If we spend the next few weeks going after oil targets to affect the war chest financing Daesh, how will it affect global oil prices?
A year ago, Saudi Arabia led the Organization of Petroleum Exporting Countries in keeping production quotas steady, exacerbating a global glut and sending prices tumbling. Analysts surveyed by Bloomberg expect a repeat this year when the group meets tomorrow [Friday 4-Dec-2015] in Vienna. Iran has said it will announce plans during the meeting to expand its output.
Obviously it is too early to affect this meeting and the already tabled motions should go ahead, however, by the time of the following meeting if all the Syrian oil fields are wiped out a portion of the oil production expected by the committee will not be available, this will affect prices and you will notice your local petrol stations reflecting the changes by increases prices at the pumps.
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