Oil prices fall further as threat of Middle East war recedes

Oil prices fall further as threat of Middle East war recedes

Oil prices dropped on Friday extending days of losses as the threat of war in the Middle East, a major oil producing region, receded and investors switched their attention to economic growth prospects and demand for crude.

Oil pump jacks work at sunset near Midland
FILE PHOTO: Oil pump jacks work at sunset near Midland, Texas, U.S., August 21, 2019. REUTERS/Jessica Lutz

TOKYO: Oil prices dropped on Friday extending days of losses as the threat of war in the Middle East, a major oil producing region, receded and investors switched their attention to economic growth prospects and demand for crude.

Brent crude was down 14 cents, or 0.2per cent, at US$65.23 at 0119 GMT, after falling more than 4per cent over the last two days. WTI was also down 14 cents, or 0.2per cent, at US$59.42, after dropping slightly on Thursday and plunging around 5per cent on Wednesday.

"The U.S. and Iran both appear to be trying to de-escalate ... bringing the region back from the brink of war and reducing the risk of a major supply disruption to oil markets," Eurasia Group said in a note.

Oil prices are below where they were before a U.S. drone strike killed a top Iranian general on Jan. 3, with Iran responding with a ballistic missile attack on Iraqi air bases hosting U.S. forces this week that left no casualties.

(Reporting by Aaron Sheldrick; Editing by Christopher Cushing)

Source: Reuters

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