Brent Crude Fluctuates as Lawmakers Urge Syrian Military Action

Brent crude swung between gains and losses after rising for the first time in three days yesterday as U.S. lawmakers urged backing for military action against Syria, fanning concern that possible strikes may disrupt Middle East oil exports.

Futures climbed and fell as much as 0.1 percent in London after advancing 0.3 percent yesterday. Republican Senators John McCain of Arizona and South Carolina’s Lindsey Graham urged fellow lawmakers to recognize the danger of letting Syrian President Bashar al-Assad’s use of chemical weapons go unanswered. Hedge funds and other money managers increased bullish bets on Brent to the highest in more than two years.

Brent for October settlement was at $114.32 a barrel on the ICE Futures Europe exchange, down 1 cent, at 10:45 a.m. Sydney time. The contract gained 32 cents to $114.33 yesterday. The European benchmark crude was at a premium of $7.50 to WTI futures from $7.49 yesterday, the most since June 19.

WTI for October delivery fell 81 cents from Aug. 30 to $106.84 a barrel in electronic trading on the New York Mercantile Exchange. Floor trading was closed yesterday for the U.S. Labor Day holiday and yesterday’s transactions will be booked with today’s trades for settlement purposes.

(Source: Bloomberg)