Crude Oil falls in Asia after U.S. data boost

         

              Oil futures traded lower in the early part of Wednesday’s Asian session as traders in the region opt to overlook some encouraging U.S. economic data to focus more on what the next move might be concerning Syria. 

On the New York Mercantile Exchange, light, sweet crude futures for October delivery fell 0.14% to USD108.39 per barrel in Asian trading Wednesday. The October contract settled 0.83% at USD108.54 per barrel on Tuesday. 

After touching USD110 per barrel last week on fears a Western coalition military strike against was imminent, some of the "Syria premium" has come out of crude futures. 

Congressional Republicans said they would support President Barack Obama's calls for military strikes against Syria. 

Key Republican lawmakers including House Speaker John Boehner said earlier Tuesday they'd support a presidential call for U.S. military attacks on Syria via limited air or missile strikes. 

Last week, the U.K. parliament voted against joining the U.S. in coalition strike against Syria, indicating that if the U.S. does pursue a military option, it might have to do so alone. 

Lingering Syria-related tensions prompted traders to focus more on geopolitical news than some encouraging U.S. economic data. 

In U.S. economic news out Tuesday, the Institute for Supply Management said its August manufacturing index climbed to 55.7% from 55.4% in July, good for the highest reading since June 2011. Economists expected a reading of 54.1%. The new orders index soared to 63.2% from 58.3%, but the production index fell to 62.4% from 65%. 

Some analysts believe that once the Syria situation settles down, traders will focus more on improving global economic data and that could send crude to USD112 per barrel or beyond. 

Elsewhere, Brent for October delivery was flat at USD115.71 per barrel on the ICE Futures Exchange.