Brent Retreats After Britain Rejects A Military Strike In Syria

As military action began to look less and less likely, Brent crude oil withdrew from its previous highs. The commodity traded at $114.57 at 6:45 GMT on Friday morning.

Britain announced that it would not join the US' efforts to punish Syrian President Bashar al-Assad for his involvement in a chemical weapons strike. The news cut down on worries about a supply interruption following a military strike in the region.

Despite the retreat, oil prices are set to rise for the third consecutive month since May. The price increase has been largely due to supply concerns due to tension in several major suppliers like Libya and Iraq.

Related: Benzinga Market Primer: Friday, August 30: US Military Strike In Syria Will Have To Be Solo

CNBC reported that Libya's crude oil exports have fallen to about 10 percent of capacity due to ongoing protests that have shut down six of the country's nine export terminals.

Data from the US Energy Information Administration claimed that supply interruptions kept 2.7 million barrels per day from the markets in July. Most are estimating an increase for that figure in August.

In an effort to help balance the market, Saudi Arabia may inject 10.5 million barrels per day into the markets in the third quarter. The news put pressure on Brent prices and eased concerns that skyrocketing oil prices could drag down the global economic recovery.

Amid concern that oil prices could negatively impact recent recovery seen around the world, the International Energy Agency issued a statement on Thursday which said that markets are well supplied at the moment, and the current situation does not require any action from the organization.