Economic fluctuations caused by attack on Syria will stabilize

BY APD NEWSApr 17,2018 at 11:55

The attack led by the US on Syria triggered concerns about rising crude oil prices and disruption of stock markets but experts say the fluctuations will gradually stabilize.

"The scale and influence of Syria's economy is tiny when it comes to international markets, including its energy sector,” said Ruan Zongze, executive VP and senior fellow at the China Institute of International Studies.

According to Ruan, Syria produces 1.1 million tons of oil each year, accounting for only 0.7 percent of petroleum production in the Middle East.

“So I think the political impact of the attack outweighs its economic impact," Ruan added.

Gold and oil traded slightly lower as markets opened for the first time since the alliance of US, UK and France launched a missile attack on Syria.

“Actually, every incident in the Middle East, including western countries' military attacks, will indeed impact crude oil production and futures,” said Su Xiaohui, deputy director of Department for International & Strategic Studies at China Institute of International Studies.

Despite heightened geopolitical risks, the impact on safe-haven assets has been short-lived and modest.

Experts believe that equities are unlikely to experience big losses unless the West strikes again or Russia retaliates.

Su noted that the influence should not be exaggerated. “I think the attack will directly hit investors' confidence but won't generate any substantial effect on the oil market in the mid-long term,” she said.

(CGTN)

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