Oil futures dropped below $115 dollars a barrel on Monday as concerns of an imminent strike on Syria eased.
The drop followed Russia and China urging Washington to avoid military action ahead of a key Senate vote.
The global Brent crude benchmark dipped to $114.60 a barrel after U.S. Secretary of State, John Kerry, said Syria could avoid a strike by turning over chemical weapons within a week.
“Brent is coming off as there is still no news of an imminent U.S. strike; so, people are taking money off the table.
“It is still largely a wait-and-hold situation.
“There are still a lot of jitters and everything is being prepared, but prices are not going to collapse yet because military action is still fully on the agenda,” said Rob Montefusco, oil trader at Sucden Financial.
President Barack Obama faces an uphill task to persuade Senate lawmakers to approve military strikes against Syrian Assad’s forces.
Russia and Syria urged Washington against military action on Monday, while China called for U.S. caution and a return to the United Nations to discuss Syria.
Obama will give a televised address to the nation on Tuesday, making the case for intervention.
