Oil price dips below $60 a barrel - down 23% since mid-July peak

International
Oil price dips below $60 a barrel - down 23% since mid-July peak
By Finfacts Team
Sep 25, 2006, 07:38

Printer-friendly page from Finfacts Ireland Business News - Click for the News Main Page - A service of the Finfacts Ireland Business and Finance Portal

BP oil drilling rig in Gulf of Mexico

The price of light crude oil in New York, dropped below $60 a barrel after Iranian President Mahmoud Ahmadinejad said Iran may broaden discussions on its nuclear program, allaying worries about supply disruptions from the world's fourth-largest oil producer.

Ahmadinejad said on Sunday that Iran is open to discuss ``everything'' if the US ceases ``threats'' against his country. The United Nations Security Council had given Iran until August 31st to suspend uranium enrichment and Iran had threatened to cut oil supplies if sanctions are taken against them.

Crude oil for November delivery fell as much as 61 cents, or 1 percent, to $59.94 a barrel in after-hours electronic trading on the New York Mercantile Exchange (NYMEX). It was at $60.07 at 7:10 a.m. Dublin time. Oil has fallen 23 percent from its record high of $78.40 on July 14th.

Light crude oil traded at $59.80 on Wednesday last , the lowest intra-day price for the front-month contract since March 21th.

A US Commodity Futures Trading Commission report on Frday said that hedge fund managers and other large speculators cut their long positions or bets that prices will rise, by 39 percent in the week ended September 19th.

In London, Brent crude oil for November settlement fell as much as $1.17, or 1.94 percent, to $59.08 a barrel on the International Petroleum Exchange on Friday last.