Oil Drops Near $110 on Lesser Supply Fears

Reuters reported today that oil prices have fallen as worries have subsided regarding supply interruptions in Libya and Iraq.

As quoted in the publication:

The North Sea oil benchmark reached a new three-week low, as Libya prepared to resume oil exports from two ports closed for nearly a year and violence in northern Iraq has spared the country’s oil production. Brent had climbed to a nine-month high of $115.71 in June amid the Iraqi crisis, but has since dropped more than 4 percent, as supply exports have remained unaffected. Brent fell 41 cents at $110.21 a barrel by 11:10 a.m. EDT (1510 GMT). U.S. oil fell 75 cents from Thursday to $103.31 a barrel. Friday, July 4, was a public holiday in the United States.

Macro strategist at Global Hunter Securities, Richard Hastings, told Reuters:

What we’re seeing is a conclusion to the Iraq risk premium. We’re going to see a little bit more of this in the next couple of days, with Brent and U.S. crude prices heading down around $109 and $102 a barrel.

Click here to read the full Reuters article.