Oil prices recovered from their drops from the last two days and rose on news that theFederal Reserve would keep its stimulus efforts in place and U.S. crude inventories dropped to their lowest levels in approximately 18 months.
This morning's EIA inventory report showed that crude stockpiles dropped by 4.4 million barrels last week, surprising many analysts and investors who were expecting a drop of about 1.2 million barrels.
The report helped to extend the gains WTI was already seeing in early trading.
Later in the day, the Federal Open Market Committee said that it will continue its bond-buying program at the current pace.
The news came as a surprise, as many have been anticipating that the central bank will reduce its buying rate beginning this month.
WTI rose $2.65 to settle at $108.07/bbl, while Brent jumped $2.41 to settle at $110.60/bbl. Bunker prices were firm in the primary ports.
Crude markets start the week with a drop as theUnited States and Russia came to an agreement on the framework of a deal that calls for Syria to turn its chemical weapons over to international authorities.
The resolution calls for President Bashar al-Assad to declare Syria's chemical weapons by the end of the week.
News of the agreement pushed prices lower as investors' concerns about supply disruptions were greatly eased.
Any fears of military strikes in the near term have been greatly reduced, allowing fundamentals to play a bit larger of a role in prices.Prices received some further pressure as Libya's state news agency reported that production at the country's El Feel and Sharara oil fields had resumed.
As more of Libya's export terminals come back online, it will allow more oil to flow into the marketplace.
Investors are now looking to this weeks EIAinventory report for an idea of supply & demand in the states and will also follow the upcoming Fed meeting for a sign of possible stimulus tapering.
WTI dropped $1.62, settling at $106.59/bbl, while the Brent November contract decreased $1.63 to settle at $110.07. Bunker prices were soft in the primary ports.
The video, which describes itself as "RPG fire on the Suez Canal," appears to show two individuals firing shoulder mounted rockets at the vessel, one of which strikes the hull.
Reports Monday indicated there was no damage to the Panama-registered Cosco Asiaor her cargo, however Gulf Ship News Tuesday quotedAmerican security firm Nexus Consulting (Nexus) saying a container on the top tier of the vessel had been hit by one of the rockets.
Damage was also reported to the hatch nearest the accommodation block.
"We don't expect to see either an increase in volume or intensity of attacks, and though this is most likely an isolated incident, not specifically targeting a ship or ships in general, the canal can expect to see greater risk of collateral damage from conflicts in and around Egypt," said Nexus president Kevin Doherty.