Crude oil futures fall steeply on US/Russia Syria deal

16 September 2013 11:38  [Source: ICIS news]

LONDON (ICIS)--Crude prices fell almost $3.00/bbl on Monday to take Brent crude on ICE Futures to below $109/bbl on the back of a US-Russia deal on the destruction of chemical weapons in Syria.

The US and Russian framework concluded over the weekend expects Syria to submit detailed information on the whereabouts and nature of the chemical weapons within a week.

The proposed joint US-Russian draft decision leaves room for referral to the UN Security Council in case of non-compliance by Syria, averting the possibility of a US military attack on Syria and any disruption to Middle East oil supply.

By 10.20 GMT, November Brent crude had hit a low of $108.73/bbl, a loss of $2.97/bbl from the previous day’s close of $111.70/bbl, before recovering to around $109.50/bbl.

At the same time, October NYMEX light sweet crude futures were trading around $106.80/bbl, having hit a low of $106.48/bbl, a loss of $1.73cents/bbl from the previous close of $108.21/bbl.

Meanwhile, investors are awaiting the outcome of a scheduled meeting this week of the US Federal Reserve's Open Market Committee.

Expectations the US Federal Reserve will announce a tapering of its bond-buying programme, which could curtail crude oil demand in the world's largest economy, has also pushed crude oil prices down.

($1 = €0.75)

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By: Cuckoo James
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