The price of crude oil rose to near $104 a barrel Wednesday, stabilizing after a recent string of losses.
By early afternoon in Europe, benchmark oil for November delivery was up 68 cents to $103.81 a barrel in electronic trading on the New York Mercantile Exchange.
The contract fell 46 cents to finish at $103.13 a barrel on Tuesday, the lowest close since July 30. Oil has dropped over 6 percent since closing at a two-year high of $110.53 on Sept. 6.
Just a few weeks ago, President Barack Obama was considering launching a military strike against Syria to retaliate for a chemical weapons attack on Aug. 21 that the U.S. blamed on Bashar Assad's regime. But a U.S.-Russia deal to put Syria's chemical weapons under international control averted military action, at least for now.
Obama has called on the U.N. Security Council to pass a resolution that would enforce consequences on Syrian President Bashar Assad if he fails to follow the U.S.-Russian deal to turn his chemical weapon stockpiles.
Echoes of an apparent turn for the better in relations between Western powers and Iran — usually tense partly because of the Islamic Republic's nuclear program — have also weighed on oil prices recently.
"Even though a quick easing of the West's oil sanctions against Iran is not probable, the diplomatic thaw does point to a declining risk premium," analysts at Commerzbank in Frankfurt wrote in a note to clients.