West Texas Intermediate crude fell from the highest price in seven days as concern eased over the risk of a supply disruption in the Middle East. Brent declined in London.
Futures dropped as much as 0.7 percent in New York. Prices capped a second weekly increase on Sept. 26 to trade at the smallest discount to Brent in a year as ample oil supplies shielded the global market from the U.S. military campaign against Islamic State. In the latest strikes conducted over the weekend, aircraft from the U.S., Saudi Arabia and the United Arab Emirates attacked four modular refineries in Syria controlled by the extremist group, U.S. Central Command said.
“The gain in front-month WTI was so big that we can now see some profit taking,” Ken Hasegawa, an energy trading manager at Newedge in Tokyo, said by phone today. “A lot of longs were liquidated in the last two months as prices rose after the military strikes began, but so far there has been no supply disruption.”