Oil prices down over Bin Laden 'death'
Tue, 03 May 2011 02:35:00 GMT
Oil prices have settled slightly lower in New York as the news of Osama bin Laden's alleged death has prompted investors to weigh the impact of the event.
Oil prices slipped on Monday, after briefly surging near $115 a barrel, after volatile trade caused by the possibility of revenge attacks for the death of Bin Laden and the strength of the dollar, AFP reported.
Oil fell below $111 a barrel early Monday morning shortly after US President Barack Obama announced Bin Laden's death, but it was on the rise again, reaching $114.83 before it reversed course for a second time in the day.
The benchmark for June delivery fell 41 cents to settle at $113.52 a barrel on the New York Mercantile Exchange, and Brent crude lost 77 cents to settle at $125.12 a barrel on the ICE Futures exchange.
Matt Smith, a commodities analyst for Summit Energy Services Inc., said the initial reaction to Bin Laden's alleged death was bearish for the market because it seemed the event would ease unrest in the Middle East, but eventually, "people realized that it will increase uncertainty more than add clarity.”
"There will be a fear, I think, in the short-term in the markets that something might happen in the next week or two. I do think in the longer term, it suggests likely more stability in the Middle East,” said Michael Lynch, president of Strategic Energy & Economic Research.