Oil retreated from its highest close in more than three years as Middle East tensions abated on speculation that U.S.-led military intervention in Syria won't go beyond the weekend's missile strikes.
Futures slipped as much as 1.9 percent in New York. President Donald Trump declared "mission accomplished" a day after the U.S., France and the U.K. launched military strikes in response to Syrian leader Bashar al-Assad's suspected chemical attack on civilians. British Foreign Secretary Boris Johnson insisted that the hit was a one-time move. Oil rigs in the U.S. rose to a three-year high, signaling production may rise from record levels, contributing to crude’s drop.
West Texas Intermediate for May delivery fell as much as $1.25 to $66.14 a barrel on the New York Mercantile Exchange before trading at $66.91 as of 2:05 p.m. in London. The contract closed at the highest since December 2014 on Friday, rising 8.6 percent in the week. Total volume traded was about 30 percent above the 100-day average.
Brent for June settlement lost as much as $1.47 to $71.11 a barrel on the London-based ICE Futures Europe exchange, after rising 8.2 percent last week. The global benchmark crude traded at a $5.30 premium to June WTI.
Source : Bloomberg