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05 Feb 2007 Prices drop as geopolitical tensions subside
Oil prices have dropped 23 cents to under the $59 (£30.05) per barrel mark, with London Brent crude settling at $58.18 and US crude falling by the same amount to $58.79.
Last week, prices rose by as much as 6.5 per cent amid cold weather in the US and tension in Nigeria after a strike was proposed by the oil unions.
The strike, however, did not go ahead and the unions are due to meet with president Olusegun Obasanjo today to discuss a lack of security in the Niger Delta which has forced one-fifth of the nation's oil output to be shut down, Reuters reports.
Meanwhile in Iran, a nuclear official was quoted by IRNA news agency as saying the country would not suspend its uranium enrichment work.
Gholamreza Aghazad is believed to have earlier suggested that Iran would install 3,000 more atomic centrifuges at its Natanz site.
Mike Wittner, of investment bank Calyon, told BusinessDay.co.za: "The risk-premium is re-emerging into the mix. Just following the news flow, there's been a lot more coming out of Iran and Nigeria is simmering away."
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