Oil Drops Near $110 on Lesser Supply Fears

- July 7th, 2014

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

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.

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