International oil prices dropped by 2 percent, significantly drilling activities in the United States of America rose, indicating the ease of tension in the Middle East after combined air strikes on Syria during the last week.
The oil prices had gone up by 10 percent soon after the attack launched on Syria suspected of three chemical weapon production facilities in retaliation for a poisonous gas attack during the first week of April.
The combined attack of 105 missiles by US, France, and Britain caused enough reasons for the increase in oil prices.
The oil prices dipped by $1.34 to $ 71.24 a barrel. However, the crude oil in the U.S was down by $1.16 at $66.23 per barrel on Mond
The developments in Syria, the market had a relief in the sense that there is no escalation, no diplomatic hickups, following the intervention by the U.S., France and the UK.
Oil is a weapon which can be a tool to put everyone into a risk, especially when the risk factor is in the oil-producing countries in middle east.
syrian tangle may not be the main source of concern to consuming countries now, yet the affinity within the oil-producing countries in the middle east may develop an opinion against U.S, Britain, France which may polarise within, boil into a war-situation could ultimately use oil as the bargain instrument.
Money market has still a worry about the direction in which the conflict would swirl its way, fund managers have a big say in the Brent futures.
So far, the investors had their way in the sale of 640 million barrels in the past ten months as a part of the "front-month futures contract, when the delivery is to be made at a later date known as backwardation, which covers the risks of dips if any till the delivery made according to the contractual terms.
How would the Syrian war-like situation now would put Indian oil consumers into difficulty is to be watched in the coming days