oil

Oil prices have dropped today after investors achieved profits following a recent sharp rise to a three-month peak, while supply concerns easing in the Middle East also pulled prices down.

Brent dropped 11 cents to $107.32, while US crude gained 10 cents to $103.24 recovering from a low $102.71, reported Reuters.

On Friday, oil achieved its biggest weekly rise in a year, as concerns escalated that conflict in Egypt could disrupt traffic through the Suez Canal, which is a key waterway where a major portion of the world’s oil is shipped.

Oil prices came under pressure after supply worries eased following the news that Egypt’s interim head of state had decided on a timetable to hold elections. Recommencement of operations at a Libyan oilfield and an Iraqi pipeline also supported the cause.

A Reuters survey has showed that investors will now wait for the economic data from China, to get a clearer picture on whether the world’s second biggest oil consumer is improving.

Data released on Tuesday showed that the country’s annual consumer inflation jumped to 2.7% in June as food costs increased.

In a separate survey, Reuters expected oil to get a boost from an anticipated 3.3 million barrel drop in US crude stocks in the seven days before 5 July, mainly driven by lower imports and higher refinery activity.


Image: Prices dragged down due to easing of supply concerns in the Middle East. Photo: courtesy of freedigitalphotos.

Energy