Crude prices gain as consensus grows for U.S. attack on Syria
Published Sep 03, 2013 01:24PM ET
On the New York Mercantile Exchange, light sweet crude futures for delivery in October traded at USD108.39 a barrel during U.S. trading, up 0.69%.
The October contract settled down 1.06% at USD107.65 a barrel on Friday.
The commodity hit a session low of USD106.56 and a high of USD108.50.
Key Republican lawmakers including House Speaker John Boehner said earlier they'd support a presidential call to unleash the U.S. military on Syria via limited air or missile strikes, which could engulf the broader Middle East in conflict and threaten supply.
Fears that bipartisan support for military action against Syria boosted prices as did U.S. data.
In the U.S. earlier, the Institute for Supply Management reported earlier that its August purchasing managers’ index rose to 55.7 from 55.4 in July, beating analysts' calls for a 54.0 reading.
The data supported prices by painting a picture of a more robust U.S. economy that will demand more fuel and energy going forward.
On the flipside, the report also cemented views held by many that the Federal Reserve could start to unwind its USD85 billion monthly bond-buying program at its upcoming Sept. 17-18 policy meeting.
Monthly asset purchases weaken the greenback to spur recovery as long as they remain in effect, which makes oil an attractive buy in dollar-denominated exchanges, though fears persist that oil may lose its appeal once the Fed begins to scale back stimulus measures.
On the ICE Futures Exchange, Brent oil futures for October delivery were up 1.19% at USD115.70 a barrel, up USD7.31 from its U.S. counterpart.
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