Oil Prices Dip in Asia as Syria Fears Subside
Oil prices eased in Asian trade Tuesday on receding fears of an immediate U.S. intervention in Syria but upbeat global economic data capped losses, analysts said.
New York's main contract, West Texas Intermediate for delivery in October, was down 93 cents at $106.72 in afternoon trade, while Brent North Sea crude for October dipped 12 cents to $114.21.
"Concerns that Syria might retaliate when the U.S. eventually strikes have already been priced in by investors," Kelly Teoh, market strategist at IG Markets in Singapore, told Agence France Presse.
"The focus for now will be on the global macroeconomic situation, and investor sentiment right now is faring better than in previous months," she said.
The potential for a U.S. strike on Syria for its alleged use of chemical weapons has been put on the backburner after President Barack Obama said he will seek support for action from Congress, which will return from recess on Monday.
Meanwhile, data over the weekend showed that China's official purchasing managers' index (PMI) of manufacturing hit 51.0 last month, up from 50.3 in July and the best reading since April last year. Anything above 50 points to growth while anything below suggests contraction.
The results follow a slew of recent upbeat data that suggest a slowdown in the world's top energy consumer and key driver of global growth may have come to an end.
Added to the rosy Chinese data, eurozone manufacturing activity hit a 26-month high in August, confirming other recent figures pointing to a recovery in the debt-hit region.
A Markit Economics survey released Monday showed the PMI for the 17-nation bloc's manufacturing sector jumped to 51.4 points in August, from 50.3 in July.
Source: Agence France Presse
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