|
Oil skids on Iraq deal
|
 |
November 16, 1998: 7:08 a.m. ET
Oil reverses recent gains after United States calls off Gulf air strikes
|
LONDON (CNNfn) - Oil prices fell Monday after the immediate threat of a military strike by the United States on Iraq receded.
After strong rises last week as mounting tension in the Gulf gave rise to fears that supply could be disrupted, January Brent Crude fell in early London trade.
The price of a barrel of oil dropped 1.8 percent or 22 cents to $12.10, following similar falls in Asia earlier.
Gold also fell slightly to $295.45 an ounce in London compared to $295.85 in New York Friday.
Military conflict was averted at the eleventh hour over the weekend after Iraq agreed "clearly and unconditionally" to cooperate immediately with weapons inspectors searching for weapons of mass destruction.
U.S. President Bill Clinton called off attacks against Iraq over the weekend and weapons inspectors are returning to Baghdad. But oil could still be set for a bumpy ride over the next few days.
Global oil supplies are high and the Organization of Petroleum Exporting Countries (OPEC) will be looking to bolster sagging oil at its meeting in Vienna next week. Prices are about six dollars a barrel lower than they were at this time last year. 
|
|
|
|
|
 |
|
