Oil prices bounced from its yesterday`s with Brent holding back against above $98 a barrel after Russia warned U.S. airstrikes in Syria against Islamic militants would be an act of aggression without a U.N. security mandate.
The oil sentiment was volatile this morning amid concerns over weak demand and geopolitical worries in the Middle East and Ukraine. Brent is poised for its worst weekly loss in six on the gloomy prospects for global oil demand. Investors are also keeping an eye on Iran striving for an a deal with six world over Tehran`s nuclear program by a late November deadline.
In its monthly report released Thursday, the International Energy Agency said that weak oil demand in China and Europe had caused a sharp downturn in global oil demand. The IEA cuts its demand growth forecast by 150 thousand barrel per day to 900 thousand barrels per day for this year and by 100 thousand barrels per day to 1.2 billion barrels per day for the next.
The slightly pickup in oil prices eased yesterday after Russia`s foreign minister said that U.S. airstrikes against the Isis without a UN Council mandate would be an act of aggression.
Russia`s envoy to the UN, Vitaly Churkin, said earlier yesterday that strikes without the consent of Damascus would complicate international efforts to counteract terrorism, and urged "consolidated action" against Isis.
On Tuesday, President Barack Obama laid out a four pronged strategy that included a request for money from congress to arm and train opposition forces in Syria, to authorize more airstrikes in Iraq and potentially in Syria, in a bid to continuing counterterrorism efforts as well as continuing to offer humanitarian assistance.
As of 03:59 am ET:
- West Texas Intermediate for October delivery rose 0.58% to $93.37 a barrel on the New York Mercantile Exchange
- Brent for October delivery fell 0.30% to 98.37 on the ICE Exchange in London