Oil price falls as fears over Syria ease

Getty Images

BANGKOK The price of oil edged lower Tuesday as fears eased of Israeli involvement in Syria's civil war.

The benchmark oil contract for June delivery was down 65 cents to $95.51 at late afternoon Bangkok time in electronic trading on the New York Mercantile Exchange.

The contract rose 55 cents to close at $96.16 per barrel on Monday after news of an Israeli military strike in Syria raised concerns of an expanded conflict in the oil-rich Middle East. The price fell back below $95 before rising again late in the day.

Over the weekend, Israel launched an airstrike in Syrian territory that reportedly targeted weapons intended for Lebanon's Hezbollah militia, an ally of Syria and foe of Israel.

Carl Larry of Oil Outlooks and Opinions said that traders were "not even thinking twice about the imminent threat."

"There's always a threat to oil production and we should have this figured out by now," he said in a commentary.

Brent crude, which is the benchmark for international oil varieties, was down 58 cents to $104.88 per barrel on the ICE Futures exchange in London.

In other energy futures trading on the Nymex:

- Wholesale gasoline dropped 1.2 cents to $2.853 a gallon.

- Heating oil fell 0.4 cent to $2.917 a gallon.

- Natural gas fell 2.4 cents to $3.987 per 1,000 cubic feet.