Investing.com - Crude oil futures tumbled on Tuesday, after Syria’s
foreign minister said Syria will accept Russia’s proposal to put
chemical weapons under international control.
On the New York
Mercantile Exchange, light sweet crude futures for delivery in October
traded at USD107.60 a barrel during U.S. morning trade, down 1.75%.
New
York-traded oil futures held in a range between USD107.56 a barrel, the
daily low and a session high of USD109.01 a barrel. The October
contract settled 0.9% lower at USD109.52 a barrel on Monday.
Oil
futures were likely to find support at USD106.55 a barrel, the low from
September 3 and resistance at USD110.70 a barrel, the high from
September 6.
Oil prices tumbled after Syrian Foreign Minister
Walid al-Moallem said that his country will agree to turn over its
chemical weapons to international control, easing concerns over a U.S.
military strike against Syria.
U.S. President Barack Obama said
Monday that he would put plans for a military strike against Syria on
hold if the country agrees to a Russian proposal to place its chemical
weapons under international control.
While Syria is not a major
oil producer, investors fear that the two-year-old civil war could spill
over to affect oil supplies in nearby countries.
Oil prices
surged to a 27-month high of USD112.22 a barrel on August 28 amid
indications the U.S. was close to taking military action against Bashar
al-Assad’s government.
Elsewhere, on the ICE Futures Exchange,
Brent oil futures for October delivery dropped 1.6% to trade at
USD111.89 a barrel, with the spread between the Brent and crude
contracts standing at USD4.29 a barrel.
London-traded Brent prices fell to a session low of USD111.86 a barrel earlier, the weakest level since August 27.
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