Benchmark oil for October delivery fell USD 1.16 per barrel to USD 108.36 at midday Bangkok time in electronic trading on the New York Mercantile Exchange. The contract fell USD 1.01 to close at USD 109.52 a barrel on the Nymex on Monday. (Agencies)
Oil prices have risen sharply in recent days following President Barack Obama's call for military action against the government of Syrian President Bashar Assad in retaliation for what the White House says was a chemical weapons attack against civilians.
But on Monday, there was reason to hope for a diplomatic solution when Syria's foreign minister welcomed a suggestion to move all the country's chemical weapons under international control.
Analysts said it could also hurt Obama's attempts at gaining congressional support for military intervention. "Backed by the UN, Russia is arranging for Syria to turn over its chemical weapons to avert a confrontation," said Vishnu Varathan of Mizuho Bank Ltd. in Singapore.
"By deflecting the approaching strike, Russia has also created greater uncertainty in the US Congress on the vote over Syria though the US is still leaning towards a strike."
Obama plans to address the nation from the White House on Tuesday about Syria.
Brent, the benchmark for international crudes, dropped USD 1.03 to USD 112.69 per barrel on the ICE Futures exchange in London. In other energy futures trading on Nymex: Wholesale gasoline fell 2.8 cents to USD 2.774 per gallon. Natural gas rose 1 cent to USD 3.614 per 1,000 cubic feet. Heating oil retreated 1.8 cents to USD 3.0999 per gallon.
Benchmark oil for October delivery fell USD 1.16 per barrel to USD 108.36 at midday Bangkok time in electronic trading on the New York Mercantile Exchange. The contract fell USD 1.01 to close at USD 109.52 a barrel on the Nymex on Monday.