LONDON: Oil prices fell on Monday after US President Barack Obama said he would seek approval from lawmakers for military action against Syria, easing prospects of an imminent strike, analysts said.
Losses were capped by news of upbeat economic data in China, which is the world's biggest consumer of energy.
New York's main contract, West Texas Intermediate (WTI) for delivery in October, shed 41 cents to $107.24 per barrel.
Brent North Sea crude oil for October dropped 44 cents to $114.45 a barrel.
US markets will be closed on Monday for the Labor Day federal holiday, but electronic oil trading will continue.
"Investors are sitting back for now after President Obama's decision to take the decision on a Syrian intervention to US lawmakers," analyst Desmond Chua at trading group CMC Markets told AFP.
After the announcement on Saturday, Obama launched an intense lobbying effort to sway sceptical lawmakers as they weigh whether to support military action against Syria for its alleged chemical weapon use, an official said Sunday.
Although Syria is not a major oil producer, traders are nervous about a broader conflict in the crude-rich Middle East region, including neighbouring Iraq.
Obama's surprise decision to hand the issue to the Congress effectively pushes military action back until at least September 9, when US lawmakers return from their summer recess.
Secretary of State John Kerry said Sunday that Washington has proof the Syrian regime used sarin gas in a deadly August 21 strike on a Damascus suburb.
Hair and blood samples given to the US by emergency workers, who rushed to the scene of the attack, showed signs of the powerful sarin nerve gas, he said.
Chua said all eyes will be on Obama at a G20 summit in Russia later this week, where Syria is likely to top the agenda.
Last week, New York oil hit a two-year high on fears of a wider conflict beyond Syria.
The market had surged on Wednesday, with New York crude striking $112.24 -- the highest level since early May 2011.
Brent oil soared to $117.34 a barrel, last seen in late February.
Prices then fell back as prospects receded for a military strike against Syria.
Comments
Comments are closed for this article.