When the USA and Russia finally decided to agree on a peaceful settlement of the Syria crisis, West Texas Intermediate or WTI crude capped its biggest weekly drop since July. It is to be noted that after a lot of pressure from the US and Russia, Syria has decided to surrender chemical weapons in a timely manner within a given timeline.
Also known as Texas light sweet, WTI is a grade of crude oil used as a benchmark in oil pricing, cut losses in the last five minutes of floor trading. On the other hand, Brent rose amidst the news that Obama stressed that the any agreement on Syrian chemical weapon surrender must be verifiable and enforceable.
Like other important oil markets such as the Dubai Crude, Oman Crude, and the OPEC Reference Basket, WTI data matters a lot for the oil industry; in fact, it is also used as a benchmark in oil pricing. According to market observers, since the Syria crisis is finally being settled upon by the US and Russia, and Syria is understood to have finally decided to shun its chemical weapons, the oil market is optimistic.
WTI Delivery Slid for October
For the month of October, WTI delivery slid 39 cents and settled at $108.21 a barrel on the New York Mercantile Exchange. Similarly, there was a decline in the price by 2.1 percent this week which is the highest since the five days ended July 26.
On the other hand, Brent Crude which is used primarily in Europe and the OPEC market basket, for October settlement rose 15 cents to $112.78 a barrel on the London-based ICE Futures Europe exchange. Brent Crude is used around the world and comprises crude oil from 15 different oil fields in the North Sea.
Receding Threat for Oil Sector
As the Syria crisis is being negotiated and settled for the better, it is also sending strong indication for crude oil market which had come under pressure when it was at the peak and the US was all set to attack.
In fact, crude rose to a two-year high on Aug. 28 when the US was hell bent to send its troops to Syria. The Middle East which produces more than 35 percent of global oil would have been in turmoil and that may have impacted the global crude oil prices to a great extent.
To contact the reporter of this story: Jonathan Millet at email@example.com