LONDON: Brent crude oil fell towards $108 a barrel yesterday, heading for its third straight weekly decline, with diplomatic efforts over Syria and Iran helping ease worries about risks to supply from the Middle East.
The United States and Russia have agreed on a draft UN Security Council resolution aimed at eliminating chemical weapons in Syria. The United States and Iran also began talks to resolve a long-running standoff over Tehran’s nuclear programme.
The easing of geopolitical tensions and plentiful supply of the market give little reason for any rise in prices, said Carsten Fritsch, senior oil and commodities analyst at Commerzbank in Frankfurt.
Brent crude oil for November fell 90 cents to $108.31 a barrel by 1337 GMT.
US crude for delivery in November dropped 20 cents to $102.83 a barrel, falling for a sixth session out of seven and down nearly two percent on the week.
A Reuters poll of 32 analysts showed Brent crude is expected to average $107.70 a barrel this year.
The North Sea benchmark, which peaked above $117 a barrel in August on concerns the war in Syria would spiral out of control and hit Middle East oil output, has traded at an average of $108.49 per barrel so far this year.