NEW YORK (AP) The price of oil fell to near $107 a barrel Monday on waning fears of a wider Middle East conflict thanks to an international deal intended to halt the use of chemical weapons in Syria.
The U.S. benchmark oil contract for October delivery fell $1.11 to$107.10 a barrel in midday trading in New York. The contract for November delivery for Brent crude, the benchmark for international crudes used by many U.S. refineries, fell $1.60 to $110.10 a barrel in London.
Oil prices are moderating because the deal between American and Russian chemical weapons negotiators reduces the chance of U.S. military action in Syria and the possible spread of Middle East violence.
Syria is not a major oil producer, but oil traders say the possibility of a wider conflict could interrupt production and shipping routes in the Middle East and cause prices to rise. In recent days, oil prices have risen and receded in accordance with the perceived likelihood of a U.S. military attack.
Prices have not fallen further, traders say, because civil unrest and labor conflicts in Libya, which is a major oil producer, has reduced the country's exports.
