Oil has declined to a three-week low as a plan to eliminate Syria’s chemical weapons reduced the risk of a disruption in Middle East oil exports.
The lower price of oil will impact some Australian stocks such as producers like Woodside Petroleum (ASX: WPL) and Santos (ASX: STO), but there is potential upside for the airlines such as Qantas (ASX: QAN) with cheaper fuel bills.
West Texas Intermediate crude for October delivery decreased 1.5 percent to finish at $106.59 a barrel on the New York Mercantile Exchange. That was the lowest close since Aug. 26.
The U.S. and Russia reached an accord on Sept. 14 in Geneva. U.S. Secretary of State John Kerry joined top French and U.K. diplomats today in calling for a tough United Nations resolution to eliminate Syria’s chemical arsenal.
Kerry and Russian Foreign Minister Sergei Lavrov agreed on a framework for locating and destroying Syria’s stockpiles of poison gas. The plan gives President Bashar al-Assad’s government one week to submit an inventory of its toxic weapons and calls for initial inspections by November.
The focus now shifts to New York, where the UN is preparing to release, as early as today; an inspection team’s report on an Aug. 21 chemical weapons strike outside Damascus that the U.S. says killed more than 1,400 people.
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