Business | Oil & Gas
Oil drops below $141 a barrel
Oil retreated to below $141 a barrel on Monday, taking a pause from a record-breaking rally that has lifted prices by almost 50 per cent this year.
- Agencies
- Published: 11:55 July 7, 2008
- Image Credit: Gulf News Archive
- The drop came after oil hit a record over $146 last week.
London: Oil retreated to below $141 a barrel on Monday, taking a pause from a record-breaking rally that has lifted prices by almost 50 per cent this year.
Investors were eyeing mixed signals from Iran, the world's fourth-largest oil exporter, in its dispute with the West over its nuclear work, and a rise in the value of the dollar.
"The market had been trending sideways for a while and now there's a break downwards," said Christopher Bellew, senior oil broker at Bache Commodities.
"Once it made a break below Friday's lows, that probably sparked off a bit of technical selling."
US crude traded at $140.77 a barrel by 1320 GMT, below Friday's intra-day low of $143.22. Brent crude fell $2.90 to $141.52.
On Monday, the dollar reached a one-week high against a basket of major currencies, benefiting from a European Central Bank tone that has reduced expectations of further interest rate rises.
Leaders of the Group of Eight nations gathering for a summit in Japan fear further oil price rises, Italian Prime Minister Silvio Berlusconi said on Monday.
"There are fears oil prices could increase further. Some people fear they could reach $200," Berlusconi told reporters on the sidelines of the summit.
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