CCTV Script 02/09/13
— This is the script of CNBC's news report for China's CCTV on September 2, Monday.
Welcome to CNBC business daily.
Signs of relief across financial markets after US president Barack Obama delayed, what was believed to be, an imminent strike on Syria, saying he wants Congressional approval first.
The White House continuing to build its case against Syria in the interim, with US Secretary of State John Kerry saying he has evidence Syria used sarin nerve gas against its own people last month.
[Sound on Tape by U.S. Secretary of State John Kerry: In the last 24 hours we have learned through samples that were provided to the United States that have now been tested from first responders in east Damascus and hair samples and blood samples have tested positive for signatures of sarin.
Bashar al-Assad now joins the list of Adolph Hitler and Saddam Hussein have used these weapons in time of war. Despite the tough talk, oil prices have retreated as the possibility of a military strike on Syria appears less imminent.]
Congress is only set to debate a strike on Syria beginning September 9th.
So could we see a drastic spike in oil prices if Washington goes ahead with military action against President Bashar al-Assad's regime? Here's what some analysts told us.
[Sound on tape by Mark Keenan, Societe Generale, Cross Commodity Research Strategist: Normally at this time of the year, we would see seasonal weakeness due to a slowdown in refinery runs, but this has been more than offset by these global disruptions. Syria is not on the world map as an oil producer. Its daily production is down to about 50,000 barrels a day. At its height two years ago, before the unrest started, it was up at 350,000 barrels. So the risk really, is a function of how much this spreads within the region. And the area we are most concerned about is what might happen if it spreads to Iraq. 093617
[Sound on tape by Dominic Schnider, UBS Wealth Management, Head of Commodity Research: Quite a good chance that If we see military action, the prices go even higher. Brent could head to $120-$127 a barrel and that simply adds to would add to a geo-political premium starts to spike.]
[Sound on tape by Thomas Bryne, Moody's Sovereign Risk Group, Senior Vice President - Regional Credit Officer, Sovereign Risk Unit: What's different this time around is that demand for oil is not as great as it was before. The shale gas revolution in the US has cut back on US imports of crude, the slowdown in China is cutting down on China imports, and Europe remains weak. There probably would be another elevation in the price, but it's not as great as if the global economy was running on all cylinders I think.]
Thanks for watching, I'm Chloe Cho at CNBC's Asia Headquarters in Singapore.