Investing.com - Financial Markets Worldwide

Brent Under Pressure As Investors Turn Towards The Fed Meeting

ByBenzinga
AuthorBenzinga
Published 09/17/2013, 08:46 AM
Updated 05/14/2017, 06:45 AM
CL
0.10%

Oil prices tumbled as worries about the situation in Syria subsided on Tuesday. Brent crude oil fell to $109.85 at 6:50 GMT on Monday morning as investors gained confidence in a UN program which will destroy Syria's nuclear weapons over the next nine months.

After the US and Russia came to an agreement in which Syria will have a week to turn over its chemical weapons, the threat of military action in the fragile region dissipated. President Obama has said a military strike isn't out of he question if the Syrian government doesn't follow the UN's disarmament plan.

Also pressuring Brent prices is the possible resolution of tension between the US and Iran which has long supported the commodity. CNBC reported that Iran's atomic energy chief is looking to resolve the ongoing dispute between Iran and the West over the Tehran's nuclear capabilities. The news put pressure on Brent prices as a diplomatic solution to the issue could mean an end to the sanctions on Iranian oil.

Anticipation of the US Federal Reserve meeting, which begins on Tuesday, also weighed on Brent prices. The bank is likely to cut its stimulus program by $10 to $15 billion which could drive Brent prices even lower.

Brent found some support from the ongoing labor strikes in Libya which have closed several of the country's largest export terminals. Strikes in the African nation have cut Libyan oil exports to less than half of their normal capacity and caused Libya to default on its contractual obligations. Now, as the winter season approaches and demand is forecast to increase, prices will be supported by the tighter supply.

BY Laura Brodbeck

Latest comments

Loading next article…
Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.