As forensic investigators piece together the final moments of the MH17 airline disaster, the delicate and reactive market of oil futures responded to the tragedy with a bump in the price of crude oil.
Fearing violence motivated by the downing of the airliner, AAA says West Texas Intermediate closed $2.30 per barrel higher than it did the weekend before the crash.
The price of oil was said to have been dropping for three straight weeks before Malayian Airlines flight MH17 was shot down and 298 people lost their lives. West Texas Intermediate, a benchmark for oil futures contracts, closed at $100.83 a barrel the Friday before the crash and at $103.13 seven days later.
Mark Jenkins, AAA spokesman, warned that tensions in Eastern Europe could hamper the slide of gas prices that have been moving into their annual, downward progression to close out the year.
"Oil rose on concerns that violence could spread in response to the crash," said Jenkins. "Gas prices are currently falling more than a half cent a day, but geopolitical tension could slow the rate of discount at the pump this week."
So far, investor pessimism hasn't hurt the downward slide of gas prices in the U.S. The Southern states have enjoyed a steady slide in prices at the pump and on July 13, Jenkins predicted that prices in the South would fall up to 20 cents two week later.
"The national and Florida average prices for a gallon of regular unleaded are 5 cents cheaper than last week and fell for the 23rd consecutive day on Sunday," AAA said in a press release. "Prices in Georgia and Tennessee fell 4 cents last week. Georgia prices are on a 27-day streak of declines. Tennessee prices fell for the 25th consecutive day."
Energy prices in Europe face a bit more uncertainty than in the U.S., though crude oil only rose by 67 cents when Brent North Sea closed at $107.66 per barrel the day after the Malaysian flight crashed.
Analysts at Commerzbank, a global bank headquartered in Germany, released a statement, which mulled the near future of the continent if Russia, Europe's power plant, was linked to the attack on flight MH17.
"In this case, it would not only be gas prices in Europe that would react, but also the prices of oil, nickel, copper, aluminum, wheat and palladium -- after all, Russia is one of the world's biggest producers and exporters of these commodities," stated Commerzbank analyst.
Meanwhile, Israel's offensive on Gaza may stress oil prices in another region of the world.
