GEO BUSINESS NEWS

Oil prices dip after jump above 72 dollars

NEW YORK: Oil prices fell below 70 dollars on profit-taking Friday after a brief rally spurred by hopes that the worst may be over for the ailing global economy. Early gains were also supported by continuing attacks on oil facilities in Nigeria and concerns about political developments in Iran, OPEC's second largest producer, following disputed presidential elections there. New York's main futures contract, light sweet crude for delivery in July, shed 1.82 dollars from Thursday's close to end at 69.55 dollars a barrel after climbing past 72 dollars. In London trade, Brent North Sea crude for August delivery dropped 1.87 dollars to 69.19 dollars per barrel. Traders said prices came under pressure ahead of Monday's expiry of the New York futures July contract. "It put downward pressure into the close," said Phil Flynn of Alaron Trading.Positive US data and stronger demand has driven the market in recent days, fueled also by unrest in key oil producing nations. "We will be going into the weekend with some legitimate geopolitical concerns," said Olivier Jakob, analyst at Swiss-based research group Petromatrix. "We will need to keep an Iranian risk premium for the weekend and to it we will add a Nigerian risk premium," he added. Since the recession hit the global economy, concerns about geopolitical issues have rarely featured as a market driver, analysts at JPMorgan Commodity Research said in a note to clients.

posted by RAJDULLARA @ 1:34 AM