Oil prices continue to rise on Syria concerns

Oil prices continued to climb Wednesday on concerns about Syria but the pace slowed down as some traders locked in profits.

The possibility that U.S. and other western countries may take military action against the Syrian government after accusing it of using chemical weapons triggered concerns about oil supplies in the Middle East, where one third of world's petrol was pumped.

The Washington Post reported Tuesday that U.S. President Barack Obama was weighing a limited military strike against Syria that would be of limited scope and duration, and the timing of such an attack would probably last no more than two days and involve sea- launched cruise missiles or possibly long-range bombers.

Energy Information Administration (EIA), the Energy Department' s statistical unit, reported Wednesday crude supplies added 3.0 million barrels to 362.0 million barrels for the week ending Aug. 23.

Moreover, U.S. crude production increased 1.2 percent to 7.61 million barrels a day, the highest level since 1989, according to the EIA.

On the economic front, U.S. pending home sales fell 1.3 percent in July following a 0.4-percent decline in June, with higher mortgage interest rates slowing the market, the National Association of Realtors reported Wednesday.

Meanwhile, mortgage applications decreased 2.5 percent from the previous week, according to data from the Mortgage Bankers Association's Weekly Mortgage Applications Survey for the week ending Aug. 23.

Light, sweet crude for October delivery increased 1.09 dollars to settle at 110.10 dollars a barrel on the New York Mercantile Exchange.

Brent crude for October delivery gained 2.25 dollars to close at 116.61 dollars a barrel.