Oil prices retreat sharply as Syria strike uncertain

PanARMENIAN.Net - Oil prices retreated sharply on Thursday, August 29 as a possible strike on Syria remained uncertain, driving traders to book profits ahead of a holiday weekend in the United States, Reuters said.

Brent crude for October delivery settled $1.45 lower at $115.16 per barrel, after trading as low as $114.91 just ahead of the market close. Brent had jumped more than 5 percent in the previous two sessions, for its strongest two-day gain since January 2012.

The United States and its allies had been gearing up for an attack in response to reports that the Syrian government used poison gas against its civilians. The White House said on Thursday it was contemplating a "very discrete and limited" response to any findings that Syria used chemical weapons.

Still, the United States and its allies have "no smoking gun" to prove Assad personally ordered the attack, U.S. national security officials said.

The lack of clarity from Western powers on Thursday about what their next move might be kept the market "jittery," prompting traders to sell out of their positions.