Crude Markets Retract from Yesterday's Gains

by Tim Bonett, KPI Bridge Oil
Wednesday September 4, 2013

Crude markets retracted a bit from yesterday's gains on news that the likelihood of an immediate strike on Syria by the U.S. military diminished.

Throughout the day, investors were waiting on news of whether or not the Senate Foreign Relations Committee would authorize the use of limited force in Syria with the hopes of leading to a negotiation with President Bashar al-Assad in order to settle the ongoing conflict.

This afternoon, news sources reported that the Senate approved the resolution, allowing President Obama to conduct the strikes.

The resolution was met with opposition at first, due to the fact that it was "too narrow", but was approved this afternoon after adding a provision to ban the use of ground forces "for the purpose of combat operations" and also to "change the momentum on the battlefield."

Investors are now focusing on events in Syria, as many are concerned that conflict could spread to the region and disrupt supplies.

Tomorrow, they will also await the EIA's inventory report for a look at the supply & demand picture in the United States.

WTI dropped $1.31 to settle at $107.23/bbl, and Brent dropped $0.77, settling at $114.91/bbl. Bunker prices were stable in the primary ports.

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