Global oil prices take off as Turkey downs Russian jet

Global oil prices rose on Tuesday after Turkey shot down a Russian jet on the Syria border, sparking fresh tensions in the crude-rich Middle East, dealers said.

At about 1730 IST, US benchmark West Texas Intermediate for delivery in January added 38 cents at $42.13 a barrel. Brent North Sea crude for January rebounded 68 cents to $45.51 a barrel, compared with Monday's closing level.

"Commodities have bounced back with oil trading higher with rising geopolitical tensions in the Middle East," said CMC Markets analyst Jasper Lawler.

Russia confirmed that a warplane shot down by Turkey on the Syrian border was one of its fighter jets but insisted the plane had not violated Turkish airspace.

The incident is the first time a Russian military plane has been downed since Moscow began a bombing campaign on September 30 at the request of its long-standing ally Syrian President Bashar al-Assad. Moscow's intervention in Syria has strained its relations with Turkey — a fierce opponent of Assad — with Ankara summoning Russia's ambassador last week after Moscow's warplanes bombed Syrian territory "very close" to the Turkish border.

"The latest escalation of the proxy war in Syria won't have much meaningful impact on oil supply or demand," Energy Aspects analyst Richard Mallinson told Bloomberg News.

"But with trading volumes thin before Thanksgiving, we have the conditions for a knee-jerk reaction to headlines, all the more so as physical oil markets show positive signs," he added.

Traders were awaiting a report on US commercial crude stockpiles for the week ending November 20. Expectations are that the data will show another increase, signalling weaker demand in the world's top oil consuming nation.