Business | Oil & Gas
Oil falls marginally as Turkish threat wanes
Oil held steady yesterday, supported by speculative buying, but with the impact of a Turkish incursion into oil-producing northern Iraq fading as a market factor.
- Reuters
- Published: 23:40 February 25, 2008
London: Oil held steady yesterday, supported by speculative buying, but with the impact of a Turkish incursion into oil-producing northern Iraq fading as a market factor.
US light crude for April delivery fell 15 cents to $98.66 a barrel by 1215 GMT. London Brent crude was six cents lower at $96.95. Speculative funds flowed into oil last week as the contract rallied to a record high above $101 a barrel on Wednesday.
"We are seeing little indication that fund infatuation with commodities has waned, particularly as the global stock and bond markets continue to struggle," MF Global said.
Speculators on the New York Mercantile Exchange increased long positions in crude, RBOB gasoline and heating oil contracts sharply last week, data from the US Commodity Futures Trading Commission showed on Friday.
The Turkish incursion and cold weather in the United States Northwest late last week had helped oil prices to edge up above $99. "None of the above factors have much 'staying power'. The Turkish incursion, while troubling, will be of limited duration, and does not seem to be putting any production at risk," MF Global said in a research note.
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