Middle East Turmoil Sends Oil to 3-Month High

Crude oil hit its highest point since the middle of May on Friday, as tensions in the Middle East continue to drive supply side fears among investors. The price of crude was up by more than $1 a barrel to reach as high as $96.24 during mid-day trading. A slight downward correction later in the day resulted in the commodity finishing out the week at $96.14. This week, developments in the Middle East are likely to be the driving force behind any movements in the price of oil. Any escalation in the conflict in Syria or in the current tensions between Iran and Western powers could drive oil higher. In addition, traders will also want to pay attention to Wednesday's US Crude Oil Inventories figure. If the indicator signals that demand in the US has gone up once again, crude could see gains during mid-week trading.

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