After President Barack Obama confirmed that a Congressional vote to take military action in Syria will be postponed and Damascus accepted the Russian proposal to put its chemical weapons under international control, crude may continue to extend losses.
Obama vowed on Tuesday to examine Russia`s proposal, yet he voiced skepticism about it and continued to seek support for his plan to use military force should diplomacy fail. Crude could rise if any move against Syria spills over into violence in the Middle East.
- Crude is trading around $107.04 per barrel after falling $0.35
- Brent is trading around $111.43 per barrel after rising $0.18
However, the optimism over China`s economy continues to boost confidence, limiting crude’s losses. China’s industrial production, retail salesl and exports grew more than expected. Thus, improving the outlook for oil demand.In the US, crude stockpiles decreased 2.93 million barrels last week, according to the American Petroleum Institute. The Energy Information Administration today may show that crude inventories slid 2.1 million barrels, while gasoline may fall 1 million barrels.
- Natural gas is trading at $3.584 per cubic feet after rising 0.01%
- Gasoline is trading at $2.7309 per cubic feet after falling 0.18%
- Heating oil (diesel) is trading at $3.0655 a gallon after falling 0.04%