Bin Laden Killed After Oil Prices Down Sharply

Tuesday, May 3, 2011 Label:
Oil prices fell more than three percent on Monday after U.S. forces killed al-Qaida leader Osama bin Laden following a decade of military operations throughout central Asia and the Middle East. Brent crude oil futures for June delivery fell 4.22 dollars to as low as 121.67 dollars per barrel before rising to 123.65 dollars at 11:10 GMT (18:10 GMT). Last month Brent reached 32-month high above 127 U.S. dollars.
U.S. crude fell 1.90 dollars to 112.03 dollars. European futures trading volume pressured by public holidays in Britain and some other countries, which may increase the volatility of prices, brokers said oil. News bin Laden's death raised hopes that the radical attack risk olehIslam to decline and tensions in the Middle East could be reduced, bringing oil prices lower.
But analysts said most of the risk premium embedded in oil prices is based on the war in Libya, the wider unrest in the Middle East and North Africa, and rising global oil demand. "The decline in prices will be short-lived," said Carsten Fritsch, commodities analyst at Commerzbank in Frankfurt.
"Talk that the risk premium will be reduced because of the death of bin Laden too early. High risk premium due to the war in Libya and the ongoing unrest in the Middle East, and it is not possible to change," he added.
"While"The economists including David Cohen of Action Economics warned that in the near death of Bin Laden may trigger a violent response by Al-Qaeda, but analysts said it was unlikely the network will be managed to disrupt oil supplies. The closest Al Qaeda has hit the oil industry is on February 24, 2006, when Saudi forces repelled the suicide attack against the center of the world's largest oil refinery Abqaiq.
U.S. Department of Homeland Security and the FBI did not issue a warning or immediate threat credible, but Obama has warned Americans to remain vigilant. Thorbjxrn Bak Jensen of Global Risk Management also gave the impression of initial sales are not likely to end. "We consider the reaction was temporary, because there is no fundamental really new on the table. If there is, probably a good idea to secure the cost of oil," he said.
Murder son of Libyan leader Muammar Qaddafi in NATO air strikes over the weekend also encourages the hope that civil war berakhirinya faster and faster normalization of oil production, analysts said. Saudi Arabia's crude oil production rose again slightly in April to around 8.5 million barrels per day (bpd) of approximately 8.3 million bpd in March as demand increases, the industry source based in Saudi Arabia said on Sunday.
Dollar rose slightly on Monday following a slump last week, blocked investors from piling commodities this week and triggered a decrease of 10 percent to the spot price of silver. Money managers to increase their bets on U.S. crude oil prices higher to record levels combined in New York and London this week to 26 April, data from the CFTC showed on Friday, U.S. oil prices rose to its highest level since September 2008.

Source: Antara
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