Crude Oil Slumps on Syria Deal; Soybeans Fall


Oil prices fell Monday, after a deal between the U.S. and Russia over getting rid of Syria’s chemical weapons.

Crop prices fell, led by soybeans, while metals prices ended mostly higher.

Crude oil for October delivery fell $1.62 to $106.59 a barrel in New York.

Oil prices fell because the deal between America and Russia reduces the chance of U.S. military action in Syria and the possible spread of violence in Middle East, which could disrupt the flow of oil.

The contract for November delivery for Brent crude, the benchmark for international crudes used by many U.S. refineries, fell $1.63 to $110.07 a barrel in London.

The average retail price of gasoline fell less than a penny, to $3.52 per gallon. The national average has either fallen or remained flat every day this month, and is now lower than it has been since July 10.

The price of gasoline is slowly falling, despite relatively high oil prices, because of seasonal factors. Gasoline consumption declines in the fall, and looser wintertime clean air rules allow refiners to switch to lower-cost blends of gasoline. Also, a quiet hurricane season so far has meant there have been no weather-related refinery interruptions.

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.

In other energy trading, wholesale gasoline fell 5.3 cents to $2.717 per gallon, natural gas rose 6.1 cents to $3.738 per 1,000 cubic feet and heating oil fell 5 cents to $3.064 per gallon.

Soybeans for November delivery fell 33.25 cents to $13.4825 a bushel.

Other agricultural futures also closed lower. December corn fell 2.5 cents to $4.565 a bushel, and December wheat edged down 0.25 cents to $6.4125 a bushel.

Gold for December delivery rose $9.20 to $1,317.80 an ounce. December silver rose 28.9 cents to $22.009 an ounce.

Other metals prices were mixed.

December copper rose 1.85 cents to $3.222 a pound. October platinum fell $3.30 to $1,441.20 an ounce, and December palladium edged up $6.95 to $706.05 an ounce.