After the US agreed to call off military action against Syria after striking a deal with Russia to remove Damascus`s chemical weapons tensions over Syria eased and worries over a disruption in oil supplies from the Middle East faded. US Secretary of State John Kerry and Russian Foreign Minister Sergei Lavrov agreed on Saturday to back a nine-month UN program to destroy the chemical arsenal of Syrian President Bashar al-Assad.
Crude is trading around $107.11 a barrel after falling $1.10 - Brent is trading around $110.58 a barrel after falling $1.12 The decline in crude prices came despite the weakness in the dollar; the greenback is near a 4-week low on bets the Federal Reserve will keep its monetary policy loose after Lawrence Summers pulled out from the race to be the next central bank governor.
The Federal Open Market Committee is meeting for two days from until Wednesday with expectations that policymakers will reduce the huge bond buying program, which may put more downward pressure on oil prices and dollar dominated commodities. - Natural gas is trading at $3.679 per cubic feet after rising 0.05% - Gasoline is trading at $2.736 per cubic feet after falling 1.21% - Heating oil (diesel) is trading at $3.0857 a gallon after falling 0.90%.