Oil prices fall on Mideast truce, OPEC report
Crude prices fell heavily amid signs that a ceasefire between Israeli troops and Hezbollah guerrillas appeared to be holding and as OPEC trimmed its estimate of world oil demand, traders have said.
By Agencies |
NEW YORK: Crude prices fell heavily amid signs that a ceasefire between Israeli troops and Hezbollah guerrillas appeared to be holding and as OPEC trimmed its estimate of world oil demand, traders have said.
However, market participants said bigger-than-expected falls in weekly US oil and gasoline stocks had limited yesterday's price falls.
New York's main oil futures contract, light sweet crude for delivery in September, closed down $1.19 at $71.89 per barrel.
The contract had fallen as low as $71.70 in earlier trading, its lowest level since July 19.
In London, Brent North Sea crude for September delivery settled 72 cents lower at $73.08 per barrel. Brent had earlier dipped to $72.05, its lowest point since July 20.
"Crude prices retreated further as a truce between Israel and Hezbollah held for a second day," said Mike Fitzpatrick, an analyst at Fimat USA.
Traders had feared a widening of the Israeli-Lebanon crisis prior to this week's ceasefire, amid concerns it might have affected regional oil shipments.
"OPEC lowered their forecast for world oil demand growth," Fitzpatrick added, referring to another factor which depressed prices.
The oil cartel said in a report yesterday that world oil demand was now expected to grow by 1.3 million barrels per day (bpd) to average 84.5 million bpd, a downward revision of 80,000 bpd from last month's estimate.
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