Oil falls towards $108 as Middle East tension eases

September 27, 2013 | Commodities & Oilprice, Middle East

Oil prices

Oil prices

London – Brent crude oil fell towards $108 a barrel on Friday, 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.