Oil Prices Down as U.S, Russia Break Deadlock on Syria

Oil prices eased in Asian trade Friday after the United States and Russia agreed a draft U.N. Security Council resolution on destroying Syria's chemical arms, analysts said.

New York's main contract, West Texas Intermediate for delivery in November, dipped 32 cents to $102.71 in afternoon trade, while Brent North Sea crude for November was down 13 cents at $109.08.

The draft U.S.-Russia resolution, seen by Agence France Presse, does not propose immediate measures over a chemical attack in Damascus one month ago. But it allows for possible sanctions -- after a new vote - if there are breaches of an armament plan.

The 15-member Security Council held its first talks on the text late Thursday and a vote could be held on Friday with several top ministers taking part, diplomats said.

Investors had earlier feared that a possible U.S.-led strike on Syria in retaliation for its alleged use of chemicals against its own people would spark a wider conflict in the crude-rich Middle East.

"The Syria risk is off the table with the U.N. agreeing on a resolution," Kelly Teoh, market strategist at IG Markets in Singapore, told AFP.

Prices were unaffected by a rally on Wall Street that was fueled by upbeat U.S. jobs and housing data.

A thaw in ties between the West and Iran was also tempering prices.

A meeting between U.S. Secretary of State John Kerry and his Iranian counterpart on Thursday has raised hopes of an easing of Western sanctions against Tehran over its nuclear program. Such a move would allow the oil-rich nation to export more freely.