Brent Near $116 On Situation In Syria
Brent crude oil started the week off just below $116 as fears about military intervention in Syria continued to boost its price. The commodity traded at $115.90 at 6:45 GMT on Monday morning as tension heightened ahead of the Senate's vote, scheduled for Wednesday.
Reuters reported that some members of the US government think Obama has lost support for his plan to launch targeted attacks, and that the President could be turned down when it comes to a vote.
According to a Washington Post tally of votes, 223 members of the House are against or leaning against authorizing military strikes. Only 217 votes against are needed to block Obama's plan.
On Monday, President Obama is expected to continue to plead his case during television interviews, while his national security adviser Susan Rice speaks about the matter in Washington.
Syrian President Bashar al-Assad has denied any involvement with the chemical weapons attack and claimed that the evidence was not conclusive. Assad has also claimed that the allegations against him are politically motivated and that military strikes will be answered.
Weak data from the US last week also contributed to Brent's strength as the dollar weakened and the likely hood that the Fed would begin tapering its stimulus plan dropped. Although bets are still on for a September taper, weak US data has some second guessing the Fed's timeline.
Limited supply from OPEC member Libya is also keeping Brent prices elevated. Labor strikes in the nation have cut down on its production and tightened oil supply. However, Saudi Arabia ramped up its crude exports to cover the gap left by Libya and produced 10.10 million barrels per day in August, a record high.
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