Oil prices rally after US missile strike on Syria

1. Oil prices held near one-month highs on Friday after the United States attacked a Syrian air base but stocks and the dollar recovered early falls when a US official played down the risks of an escalation. The US dollar recouped all of its losses against a basket of major currencies and was last trading little changed. S&P 500 futures were down 0.1 per cent. European stocks fell 0.3 per cent weighed down by weakness in mining stocks as investors locked in some profits following the sector's stellar run this year. The United States fired dozens of cruise missiles at a Syrian air base from which it said a chemical weapons attack was launched this week, an escalation of the US military role in Syria that swiftly drew sharp criticism from Russia.

2. A US defence official toldReutersthe missile strike was a "one-off", helping to calm market nerves. "The US missile strike on a Syrian air base overnight caused a knee-jerk shift into safe havens, although the impact was moderate as it is being interpreted as a one-off proportionate response," said Ian Williams, a strategist at Peel Hunt in London. Oil prices hovered near one-month highs though prices pared some gains as there seemed no immediate threat to supplies. Also Read: Major oil marketing companies mull daily fuel price change Brent crude futures which surged more than two per cent after the US attack were last up 1.5 per cent at $55.72 a barrel. US West Texas Intermediate (WTI) crude futures were up 1.6 per cent. Focus was also shifting to US payrolls later in the day for further cues on the strength of the economy. Job growth likely slowed in March after unseasonably mild weather boosted hiring over the prior two months. Elsewhere, euro zone finance ministers are due to meet with a discussion on Greece's progress in implementing reforms needed to unlock aid part of the agenda. Nonfarm payrolls probably increased by 180,000 jobs last month, according to aReuterssurvey of economists. Investors had already been on edge with talks poised to begin between Donald Trump and Chinese leader Xi Jinping over flashpoints such as North Korea and China's huge trade surplus with the United States. Read full Article.