Brent Slides On UN Program To Destroy Syria's Chemical Weapons

Brent crude oil slid below $111 on Monday morning and traded at $110.74 at 7:00 GMT. Prices tumbled after a deal between Russia and the US called off military action in Syria and eased concern about a supply interruption in the Middle East.

reported that over the weekend, US Secretary of State John Kerry and Russia's Foreign Minister Sergei Lavrov both committed to a UN program which will destroy Syria's stock of chemical weapons over the next nine months. The agreement came after icy relations between the US and Russia were highlighted by fruitless meetings at which the two couldn't agree on a solution to the situation in Syria. Now, with military action off the table and an agreement between Russia and the US, Brent prices have settled. The US Federal Reserve meeting is also weighing on Brent prices as most are expecting the bank to announce the beginning of its tapering plan. The two day meeting begins on Tuesday and despite recent weak labor data, most expect that the Fed will reduce its asset purchases by at least $10 billion. Interest rates are expected to remain constant based on forward guidance from the bank which claimed rates would remain low until unemployment in the US dropped below 6.5 percent. The dollar slipped near a four week low on Monday after Lawrence Summers, a candidate to lead the Federal Reserve, removed himself from consideration. Summers withdrew from the race to replace Fed Chairman Ben Bernanke on Sunday, leaving fellow candidate Janet Yellen to take over as favorite. Although the new development weighed heavily on the dollar, it did little to pare oil's losses.