Crude oil is trading at 106.68 easing by 86 cents this morning, while Brent oil is trading at 110.80 down by 93 cents. Oil prices falls were limited by the severe drop in the US dollar which fell hard after FOMC member Larry Summers withdrew his nomination for Mr. Bernanke’s position as Director of the Federal Reserve, when Mr. Bernanke steps down in January 2014. Crude oil prices settled marginally lower on Friday on the back of a stronger dollar. Meanwhile, some profit booking also weighed on the prices as WTI and Brent gained 1% in the previous trading session. WTI crude capped its biggest weekly drop since July. Energy saw their biggest declines early in the week as an agreement appeared to emerge that would avert—or at least delay—a U.S. strike on the Syrian government in retaliation for its use of chemical weapons. Syria is only a minor oil producer, but investors have worried that conflict in the region would set off a chain reaction of turmoil elsewhere and disrupt more significant production centers—much as the “Arab Spring” uprising that began in Tunisia eventually led to a sharp decline in Libyan production. As the prospect of an attack on Syria faded, oil prices fell from the two-year high they had reached on the previous Friday. Another factor boosting sentiment may have been investors’ increasing comfort level with potential changes in monetary policy emerging from the Federal Open Market Committee meeting on September 17 and 18. Many economists expect that policymakers will decide to reduce the pace of the Fed’s purchases of long-term bonds, which have helped keep long-term interest rates very low even as economic prospects have improved. Improving conditions in both the housing and labor markets, and new found strength in U.S. manufacturing and energy production, should provide support for commodities over the longer term.