Oil prices fall on Mubarak's resignation

oil.top.pngClick chart for more on commodities By Laurie Segall, staff reporter


NEW YORK (CNNMoney) -- Oil prices fell following the news that Egyptian president Hosni Mubarak would step down after three decades. Crude oil slumped $1.16 to $85.16 a barrel in midday trading Friday.

Matt Smith, commodity analyst at Summit Energy, said prices had been rising due to the political unrest and uncertainty in Egypt. But prices fell to their lowest levels in several months as tensions eased.

Other dollar-denominated commodities, including gold and silver, also drifted lower following Mubarak's resignation. Gold prices slid $5.30, settling at $1,357.20 an ounce.

In the past week, crude oil prices have been fluctuating wildly as tension and political unrest played out overseas

"We're just waiting for news story after news story of what's going to be positive and what's going to be negative," PFC energy trader Dan Flynn said.

"I do believe when the dust settles, this is a positive thing in Egypt," Flynn said, adding that oil prices could fall further.

Poor weather across the globe and damaged crops also led to a run up in grain prices and other agricultural commodities like cocoa and sugar.

A recent report from IHS Global Insight's Agriculture Service showed food prices are approaching 2008 peaks. Smith added that commodities may continue to head higher over the coming weeks due to Europe's debt worries.

"We're seeing bond yields rise and inflation concerns in Europe so funds are flying into commodities as an inflation hedge," Smith said.  To top of page

Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Overnight Avg Rate Latest Change Last Week
30 yr fixed4.08%4.24%
15 yr fixed3.19%3.23%
5/1 ARM3.36%3.46%
30 yr refi4.06%4.15%
15 yr refi3.17%3.17%
Rate data provided
by Bankrate.com
View rates in your area
 
Find personalized rates:
Index Last Change % Change
Dow 17,088.05 -10.40 -0.06%
Nasdaq 4,594.35 14.08 0.31%
S&P 500 2,004.08 0.71 0.04%
Treasuries 2.41 0.07 2.86%
Data as of 10:26am ET
Company Price Change % Change
Apple Inc 103.33 0.83 0.81%
Bank of America Corp... 16.12 0.02 0.16%
Staples Inc 12.42 0.74 6.34%
Facebook Inc 75.61 0.79 1.06%
General Electric Co 25.91 -0.07 -0.28%
Data as of 10:10am ET

Sections

Online flower peddler is buying fruit gift basket retailers for $142.5 million. More

Gas prices are falling to nearly $3 a gallon in some parts of South Carolina, and that will soon be common in much of the country. More

Microsoft is expected to begin showing off Windows 9's features later this month. Here are the expected changes you should be thrilled about. More

The Coolest Cooler is the most successful Kickstarter campaign in the site's history, raising $13.3 million from over 62,000 backers. More

A scam where fraudsters impersonate IRS agents has now stolen $5 million from taxpayers, and this woman - who lost her entire life savings -- is just one of its victims. More

Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.