Crude Flat As US Considers Limited Syrian Strike; Eyes On G20

Crude oil is trading around the $107.50 per barrel level as the US is considering only a limited military strike on Syria, easing concerns over a possible spread of the conflict to neighboring countries, lessening the chances of a disruption in oil supplies from the Middle East.

A key Senate panel backed on Wednesday President Barak Obama’s request to strike Syria, yet it gave him only limited authority to use force. Republican leaders John Boehner and Eric Cantor both supported Obama. The Congress is expected to vote next week.

The resolution would limit strikes against Syrian forces to a period of 60 days, with a possible 30-day extension after consultation with Congress; moreover, it would block the use of US troops for ground combat.

- Crude is trading around $107.34 a barrel after rising $0.11

- Brent is trading around $115.12 a barrel after rising $0.21

Keeping crude flat is the rising caution ahead of the ECB and BoE rate decisions later in the day. The G20 starts in Russia today and the confrontation between Obama and Putin is expected to be tough.

Investors are also awaiting key jobs data from the United States on Friday for clues on when the Federal Reserve will start cutting its massive bond-buying program. A rise in the number of added jobs will increase the bets for reduced stimulus, pushing the dollar higher.

Crude stockpiles in the world’s biggest oil consumer dropped by 4.16 million barrels last week, the American Petroleum Institute reported yesterday. The EIA report today may show that crude inventories shrank by 2 million barrels.

- Natural gas is trading at $3.675 per cubic feet after falling 0.22%

- Gasoline is trading at $2.8638 per cubic feet after falling 0.02%

- Heating oil (diesel) is trading at $3.1371 a gallon after falling 0.01%