Posted on 07/22/2003 3:15:48 PM PDT by demlosers
World oil prices slumped today on news that two of former Iraqi leader Saddam Hussein's sons had been killed in a fierce firefight, easing concerns about unrest in Iraq.
New York's benchmark light sweet crude contract for delivery in August tumbled 1.59 dollars to 30.19 dollars a barrel.
It was the last day of trade for the August contract.
In London, the price of Brent North Sea crude oil for September delivery plunged 1.20 dollars to 27.49 dollars a barrel.
Experts said the deaths of Saddam's sons tended to ease tensions and the possibility of interrupted oil supplies in Iraq.
The market had struggled to gain ground earlier despite refinery outages and expectations of a decline in US commercial crude oil inventories, said Fimat analyst Mike Fitzpatrick.
"The final blow was the capture and killing of Saddam's two sons, raising hopes that this would lead to less interference with the oil infrastructure in Iraq," he said.
US army Lieutenant General Ricardo Sanchez said in Baghdad that the two sons of Saddam Hussein, Uday and Qusay, had been killed in a US raid on a building in Mosul, northern Iraq.
"Four persons were killed during that operation and were removed from the building and we have since confirmed that Uday and Qusay Hussein are among the dead," said Sanchez, commander of US ground forces in Iraq.
Witnesses said US helicopter gunships fired more than 20 missiles during a six-hour battle, demolishing the house.
"Oil prices are off on the back of headlines that Saddam's sons are probably killed, which brought some fund selling," Barclays Capital analyst Orrin Middleton said earlier in London.
"That could potentially remove some tensions in the region," said Middleton.
Traders were also looking ahead to tomorrow's weekly US oil stock figures from the Department of Energy and the American Petroleum Institute, analysts said.
"Early expectations for US stocks are for a crude draw of 1.5 million barrels, a gasoline draw of 1.25 million barrels and a distillate build of 750,000 barrels," said GNI trader Lee Elliott in London.
Unexpected fluctuations in US oil reserves over recent weeks have sent prices soaring or plunging as changing levels rattle markets concerned about the low level of stocks in consumer countries.
AFP
Refining petroleum takes time, thus the delay. Crude oil bought three months ago, is only now hitting the pumps. Conversely, a suspected huge impact in deliverability (ie. war) will have an immediate impact due to traders anticipating future pinches in supply.
On the other hand, how much you been paying for popcorn and coke at your local movie theatre, not to mention the ticket prices.
It's always a struggle from this side of the fence to maintain the illusions, spinning & shouting like the poor wizard of oz behind his little booth off to the side of reality.
You're on a roll, my friend.
WHACK AND STACK THE ISLAMOFACISTS THUGS AND OPECKER PRINCES. THEN WATCH THE WORLD'S ECONOMY TAKE OFF LIKE A ROCKET!
Refined products, like gasoline, go up in price because of the shortage.
You got the formula down. It's coming and coming faster than a RAT would like.
Pipelines & barges move product in various stages around quickly to where specific products can be finnished most effectively.
Also modern reformulation technology means anything can be turned into anything else now at a moments notice.
No muss, no fuss.
p.s. But don't tell anyone, they like to pretend it's still a real hard job & subject to ancient problems to maintain public illusion for price support.
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