Oil price dips in New York after bin Laden slain
NEW YORK—Oil prices slipped slightly in New York Monday, after briefly surging near $115 a barrel, as investors weighed the impact of the US killing of Al-Qaeda mastermind Osama bin Laden.
New York’s benchmark futures contract, West Texas Intermediate for June delivery, closed at $113.52 a barrel, down 41 cents from Friday.
London financial markets were closed for the May Day holiday.
The New York session was a “very choppy day,” said Matt Smith at Summit Energy, as investors digested news that US forces had killed bin Laden Sunday in a raid on his compound in Pakistan.
The initial reaction was bearish for the market because it appeared his death would ease unrest in the Middle East, Smith said.
But eventually, “people realized that it will increase uncertainty more than add clarity,” he said.
The WTI contract initially had plunged to $110 on the news of bin Laden’s death.
But it rapidly reversed course and headed upward, climbing as high as $114.83, the highest peak since September 22, 2008, before easing back.
Rich Ilczszyn of Lind Waldock said his first thought upon learning of the terrorist leader’s death was to “buy equity, buy the dollar and sell crude oil, and I think a lot of traders jumped into that trade.”
After further reflection, however, he concluded: “It’s probably going to increase tensions.”
