Belfast Telegraph

Sunday 31 August 2014

Osama bin Laden killing pushes oil price down

A man who said he was dressed as "Captain America," cheers early Monday, May 2, 20111, across the street from the White House in Washington, as people gather to cheer the United States after it was announced that Osama bin Laden has been killed. (AP Photo/Jacquelyn Martin)
Crowds celebrate on Pennsylvania Avenue in front of the White House in Washington, early Monday, May 2, 2011, after President Barack Obama announced that Osama bin Laden had been killed. (AP Photo/Charles Dharapak)
Dustin Fredrickson, of New York, center, holds up an American flag as he stands on a fire truck amongst those gathered in New York's Times Square reacting to the news of Osama Bin Laden's death early Monday morning May 2, 2011. (AP Photo/Tina Fineberg)

Oil prices eased off two-and-a-half-year highs to below 113 dollars a barrel today after US president Barack Obama announced that al Qaida leader Osama bid Laden had been killed.

Benchmark crude for June delivery was down 1.23 at 112.70 dollars a barrel at midday Singapore time in electronic trading on the New York Mercantile Exchange.

The contract rose 1.07 to settle at 113.93 on Friday and reached 114.18 during in the session, the highest since September 2008.

In London, Brent crude for June delivery was down 98 cents to 124.91 a barrel on the ICE Futures exchange.

President Obama said bin Laden was killed yesterday by American special forces in Pakistan. Traders said the death of bin Laden could weaken al Qaida's ability to carry out attacks and destabilise the oil-rich Middle East.

However, al Qaida operatives could also seek revenge for their leader's death, and political uprisings this year throughout the Middle East and North Africa that have threatened to disrupt crude supplies were not related to al Qaida.

Trading volume was light in Asia as markets in China, Hong Kong, Taiwan, Malaysia and Singapore will closed for international Labour Day. Markets in Japan were open today but will be closed the next three days for Golden Week holiday.

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