Oil prices decreased for the third day in row, as tensions eased over a possible US-led strike on Syria, following the latter’s support for a Russian proposal to hand over chemical weapons.

Brent futures was down by $2.47, before finally settling at $111.30 a barrel, while US crude fell by 31 cents to settle at $107.08 a barrel, reported Reuters.

The Russian proposal to give up chemical weapons was accepted by the Syria Government to win a reprieve from US military strikes; however, differences between Russia and the US arose, which would obstruct a UN resolution to seal a deal.

The Organisation of the Petroleum Exporting Countries (OPEC) said that the world oil market followed good supplies, despite a decrease in Libya’s output and the prediction of a further drop in its oil market share in 2014.

In its report, the US Energy Information Administration (EIA) predicted world oil demand would grow by 20,000 barrels per day (bpd) this year to 1.11 million bpd, while it slashed its 2014 demand growth by 30,000bpd, to 1.19 million bpd.

Image: Oil prices fall on eased Syrian tensions. Courtesy of Michelle Meiklejohn.

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