NEW YORK : Global oil prices dropped Tuesday, with the US futures contract sinking below $100 for the first time since May on receding worries about Iraq supply disruptions.
US benchmark West Texas Intermediate for August fell 95 cents to close at $99.96 a barrel on the New York Stock Exchange.WTI had not finished below the century mark since May 9.
Brent North Sea for delivery in August sank 96 cents from Monday, settling at $106.02 a barrel in London trade, its lowest level since April 7.
“Easing fears of an Iraqi supply disruption and tepid fuel demand levels continue to erase the geo-political risk premium (Iraq and the Ukraine) that boosted both markets to nine-month highs late last month,” Eugene McGillian at Tradition Energy said in a research note.
Iraq’s sharply divided parliament elected a speaker Tuesday in a step forward in the delayed government formation process, as a renewed bid to recapture Tikrit from a jihadist-led militant offensive ended in retreat.
The offensive has not reached southern Iraq, home to the bulk of the country’s oil industry.
After nearly three weeks of losses, the price of WTI was under pressure after the contract fell below certain technical support levels, accelerating its decline, said Bob Yawger of Mizuho Securities.