Crude Prices started the week trading lower with the WTI crude oil dropping for a second day. Meanwhile, the supply worries eased following the progressive outcome of the US-Russia talks regarding the situation in Syria. The low crude prices was dragged by the tensions over this week’s Federal Reserve meeting, scheduled for September 17- 18.
The West Texas Intermediate October deliveries dropped 1.03% lower to $107.10 a barrel at the time of writing on New York’s Nymex, after the sharp drop last week. Meanwhile the European benchmark, Brent Crude saw a massive drop by 1.94% lower to $110.60 a barrel in London, dropping to a three-week low.
The continuous loss in crude prices is due to the worries over the Syrian tension and the forthcoming Federal Reserve meeting scheduled to begin on Tuesday. Earlier today, former US Treasury Secretary Larry Summers announced that he withdrew as a candidate for chairman of the Federal Reserve.
Summers sudden announcement dragged the greenback down against the world’s major currencies, declining 0.41% lower to 81.1210 at the time of writing.
Last week the US Secretary of State John Kerry and Russian Foreign Minister Sergei Lavrov met up to discuss the situation in Syria and agreed to support the nine-month United Nations programs to eliminate Syrian President Bashar al-Assad’s chemical weapons.
Washington has agreed to call-off any military action against Syria, which have eased tensions in the country and region. According to reports from the US Energy Information Administration, the Middle East account for almost 35% of the global oil output in this year’s first quarter.
Energy Ministers in Asia remained divided between exporters after a meeting in Seoul, as importers are still looking for additional supplies to help reduce the rising fuel prices that’s affecting the economies.
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