Oil prices rebound from heavy losses

Oil prices rebound from heavy losses

Oil rebounded Wednesday from recent heavy falls but all eyes remained on Syria after US President Barack Obama asked Congress to delay voting on US military action. (AFP Photo)

Oil rebounded Wednesday from recent heavy falls but all eyes remained on Syria after US President Barack Obama asked Congress to delay voting on US military action.
(AFP Photo)

AFP – Oil rebounded Wednesday from recent heavy falls but all eyes remained on Syria after US President Barack Obama asked Congress to delay voting on US military action.

Trade was cautious despite Obama’s move and as dealers awaited the latest update on crude stockpiles from the US government’s Energy Information Administration (EIA).

Brent North Sea crude for delivery in October rose $1.02 to stand at $112.27 a barrel in London midday deals.

New York’s main contract, West Texas Intermediate for October, added 33 cents to $107.72 a barrel.

The oil market had plunged by more than two dollars on Tuesday, sliding for the second day in a row on easing fears of a possible US military strike on Syria.

In a live address to the nation from the White House, Obama said delaying a decision on military intervention in Syria was necessary to give a chance to Russia’s plan to neutralise its ally’s chemical weapons.

“I have therefore asked the leaders of Congress to postpone a vote to authorise the use of force while we pursue this diplomatic path,” Obama said Tuesday, noting that Secretary of State John Kerry would head to Geneva to meet his Russian counterpart on Thursday.

However he warned that it was too early to tell if Russia’s plan would work, and said cruise missile destroyers would remain stationed in the Mediterranean, ready to strike.

“The on-going Syrian conflict will remain a headline for the majority of the day as choppy, rangebound trading dominates market activity,” said Sucden brokerage analyst Kash Kamal.

“US crude benchmarks may gain some upside support from weekly EIA crude statistics expected this afternoon,” he added.

Analysts said investors would be watching the latest stockpiles data to be for clues about demand in the world’s top crude consumer.

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