Oil prices rose as much as 3 percent on Tuesday as tensions in the Middle East escalated following the downing of a Russian fighter jet near the Syrian-Turkish border, and a weaker dollar provided an incentive for investors to buy more oil.
Brent futures for January were up 96 cents at $45.79 a barrel at 10:49 a.m. EDT (1549 GMT), up 2.1 percent on Monday’s close. U.S. West Texas Intermediate (WTI) crude was up 95 cents, or 2.3 percent, at $42.70.
“News of a military jet crashing in Syria is a reminder that there is still substantial risk in the Middle East,” said Bjarne Schieldrop, the Olso-based chief commodities analyst at SEB.
Turkey said it had shot down a Russian-made fighter jet near the Syrian border after it violated Ankara’s airspace. The Turkish military did not confirm the plane’s origin, but Russia’s Defense Ministry said one of its fighter jets had been downed in Syria.
Russian President Vladimir Putin called the incident “a stab in the back” carried out by the accomplices of terrorists, saying the incident would have serious consequences for Moscow’s relations with Ankara.
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