Oil Heading For Third Weekly Loss On Easing Mideast Tension

WTI crude oil futures extended losses and Brent crude dropped below $109 on track for third weekly loss as Middle East tension unwind. The UN Security Council is said to reach a deal on Syria and Iran began talks with the US on its controversial nuclear program easing tension over supplies from the oil rich region.

Unwinding political risk has dimmed upside support from oil that has rallied sharply amid heightened tension over Syria and expectations of an impending military strike following the use of chemical weapons on civilians.

The five permanent members of the U.N. Security Council reached agreement Thursday on a resolution requiring Syria to surrender its chemical weapons. A vote on the resolution is possible late Friday.

In other news, the outlook for talks with Iran look promising following comments from US and European diplomats Thursday saying they were please with a new and more positive approach by Iran to resolve a standoff over its nuclear program and set a new round of negotiations for next month.

- WTI Oil futures for November settlement traded lower by 0.44% at $ 102.58

- Brent futures for November settlement traded lower by 0.22% at $ 108.98

WTI is down almost $10 from the peak set in the height of the tension in Syria at $111.34 and heading to its third straight weekly loss down so far almost 2.0% from $104.90 opening levels.

Trading below $103.30 levels will put downside pressure on crude and awaiting a confirmed breakout below $102.20-00 areas to confirm extended bearishness for the coming period eying next $101.50. A rebound from $102 areas is possible to retest $103.60-30 areas but with easing tension over the Middle East and lingering deadlock in Washington over raising the debt ceiling will be capable of keeping downside pressure on crude for now.