Why Gas Is Edging Higher Ahead of Labor Day
Oil "is really going up and down with Syria," said Paul Christopher, Chief International Strategist at Wells Fargo Investors. Concern of an imminent attack, "seem to have abated."
New hurdles appeared to be slowing the formation of an international coalition to undertake a military strike against the Arab nation, which is suspected of a chemical weapons attack. Russia blocked British efforts to force a resolution at the United Nations. British Prime Minister David Cameron said his country would wait to join any military efforts until a U.N chemical weapons inspection team releases its findings.
The price of oil has surged 26 percent since touching a low for the year of $86.68 on April 17. It has jumped because of Egypt and Syria. Neither country is a major oil exporter, but traders are concerned that violence in those countries could spread to more important oil-exporting nations or disrupt major transport routes.
Benchmark oil for October delivery rose $1.09, or 1 percent, to $110.10 a barrel on Wednesday, driven higher by the prospect of Western military intervention in Syria's civil war. That price was oil's highest closing level since May 3, 2011.
On Thursday, when an attack seemed less imminent, oil fell $1.30, or 1.2 percent, to $108.80 a barrel on the New York Mercantile Exchange.
A rise in U.S. crude inventories also helped lower the price.
The Energy Department's Energy Information Administration said crude stockpiles for the week ended Aug. 23 climbed by 3 million barrels to 362.1 million barrels. Analysts had expected a slight fall.
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