Oil hovers near US$108 as US weighs military intervention in Syrian confict
By Pamela Sampson, APBANGKOK--The price of oil hovered near US$108 a barrel on Wednesday after President Barack Obama secured the support of key U.S. politicians for a retaliatory strike against Syria.
September 5, 2013, 12:01 am TWN
Benchmark oil for October delivery was down 60 cents to US$107.94 per barrel at late afternoon Bangkok time in electronic trading on the New York Mercantile Exchange.
Oil rose above US$108 a barrel Tuesday after Obama won the support of key Republicans in Congress for military action against Syria. The contract gained 89 cents, or 0.8 percent, to close at US$108.54 on the Nymex.
While Syria is not a major oil producer, the possibility of a wider conflict could interrupt production and shipping routes in the region, said Chris Faulkner, CEO of Breitling Energy Companies.
Syria, he said, is a “small, delicate pin in the world's major oil grenade and it could blow up in the world's face if the U.S. is not very careful.”
Brent, the benchmark for international crudes, fell 38 cents to US$115.31 a barrel on the ICE Futures exchange in London.
In other energy futures trading on Nymex:
— Wholesale gasoline dropped 1.5 cents to US$2.85 per gallon.
— Heating oil fell 1.5 cents to US$3.134 per gallon.
— Natural gas climbed 1.3 cents to US$3.679 per 1,000 cubic feet.