YEREVAN, September 2. /ARKA/. Crude-oil futures fell in electronic trade Monday, extending losses as the threat of large-scale U.S. retaliation against Syria was scaled back, easing supply concerns somewhat.
October crude oil CLV3 -2.04% fell $1.61, or 1.5%, to $106.04 a barrel. Trading on the New York Mercantile was slated to resume Tuesday, following Monday’s Labor Day holiday.
Meanwhile, October Brent crude UK:LCOV3 -0.39% lost $1.13, or 1%, to $112.88 an barrel.
Monday’s declines followed U.S. President Barack Obama’s announcement Saturday that he will seek approval from Congress to launch a strike against Syrian government forces for what the U.S. says was the use of chemical weapons against civilians in an attack last month.
Congress is currently in recess, but some conservative and most liberal members in the U.S. House of Representatives have already raised questions about potential action in Syria.
Oil futures on Friday dropped $1.15, or 1.1%, in Nymex trade after the U.K. Parliament rejected involvement in military action in Syria, cutting into the Syrian-intervention premium for oil.
“While [Syria] was a minor producer even before the turmoil, it sits near major transport and production centers, and the conflict there is seen by some as tossing another potential match into the region’s volatile political tinderbox,” said CIBC World Markets economist Peter Buchanan in a report Friday.
After past spikes, oil has typically declined to pre-crisis levels or lower, he Buchanan said. –0--