LONDON: Brent crude eased towards $110.50 a barrel yesterday but was supported near a five-month high as tensions over a suspected chemical weapons attack in Syria spurred concerns that increased unrest in the Middle East could disrupt supply.
Oil prices had gained alongside equities after a steep drop in new US home sales tempered expectations the Federal Reserve would soon reduce stimulus.
A large drop in US durable goods data added to the bearish sentiment that the recovering US economy was not quite strong enough for an end to economic stimulus. More dollar printing, on the hand, also supports higher oil prices.
Brent crude for October fell 33 cents to $110.71 a barrel at 1315 GMT, after touching $111.68 in early trade, the highest since April 2. US crude for October delivery fell 24 cents to $106.18 a barrel.
“We think that both WTI and Brent are likely to hit technical resistance at getting much past $106 and $110 a barrel. Today this will not be easy to overcome,” Tobias Merath, head of private banking commodity research at Credit Suisse, said.