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Oil higher on geopolitical tensions, but gains checked

Published 16/11/2015, 13:49
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Investing.com - Oil prices rose on Monday as France launched large-scale air strikes against Islamic State in Syria, but prices looked likely to remain under pressure as oversupply weighed.

U.S. crude rallied 2.17% to $41.55 a barrel, while Brent futures rose 1.18% to $45 at 8.36 AM Eastern Time.

Oil prices were pushed higher following France's large-scale air strikes against Islamic State in Syria in response to Friday's terror attacks in Paris.

But concerns over high inventories and slowing economic growth capped gains.

Oil prices have dropped more than 60% since June last year as high production and inventories have coincided with an economic slowdown in Asia, particularly in China but also Japan, which slipped back into recession in the third quarter.

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