GD:Oil slides after US makes case for action against Syria
NEW YORK—Brent crude oil fell in volatile trade on Friday ahead of a long weekend in the United States as US Secretary of State John Kerry made a forceful case for a “limited” strike against Syria. Oil prices fell, rebounded, then fell again during Kerry’s televised address. He released evidence that the Syrian government had used chemical weapons against civilians multiple times in the past year and said the “indiscriminate, inconceivable horror” could not go unpunished.
Oil markets had been concerned the crisis in Syria could spill over into other nations in the Middle East, disrupting oil supplies, especially if the United States conducted a large strike. “It’s clear there’s going to be a military strike of some kind, but it became clear that it’s going to be limited in scope and that’s why we sold off,” said John Kilduff, partner at Again Capital LLC. Brent crude for October fell US$1.12 to US$114.04 a barrel by 2:16 pm EDT (1816 GMT) after earlier reaching a low of US$113.63 prior to Kerry’s speech.
US crude for October delivery fell US$1.22 to US$107.58 after hitting a low of US$106.75. US refined products, which expire today, led the decline, with both contracts down more than 1.3 per cent. Traders said some selling on Friday was also linked to the long Labour Day weekend in the United States, with investors looking to close out positions ahead of the three-day weekend.
