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Business News

Oil prices fall as Kerry makes case for limited action

Oil prices fell as the US Secretary of State John Kerry laid out a case for limited military action against Syria yesterday.

Brent crude, which earlier this week traded above $117 a barrel, prompted by growing fears over the possibility of an attack on the country, dropped more than $1 as Mr Kerry spoke, before easing to $114.38 as supply concerns eased. Analysts said traders were also booking profits ahead of Monday's Labor Day holiday in the US.

However, the price of oil still saw its biggest monthly spike in August for a year; a little more than three weeks ago Brent crude was trading near $105 a barrel. Although some analysts have warned about the possibility of oil prices hitting $150 if the US does attack Syria, others were playing this down.

"Talk of oil at $150 is just raising fear unjustifiably," said Commerzbank's Eugen Weinberg. "It is scaremongering."