After witnessing the ‘price increase’ trend, the crude oil prices observed a declining trend today. According to the details, the New York’s main contract, for the delivery of light sweet crude for the month of August, shed 53
cents to $ 92.13 a barrel.
Brent North Sea crude for delivery in September slid about 38 cents to close at $ 107.42.
After observing a sustained increase for about a week, this was perhaps the first time when the oil prices witnessed a declining trend, said Justin Harper, a market strategist for IG Markets Singapore.
He said, “They’ve come down a little bit because of the inevitable profit taking. They have seen some solid gains in the last few days… so there will be a little bit of profit taking at the end of this week.”
For most of the week, crude prices had gone up, first on the news that the US Federal Reserve would intervene to boost the faltering economy, and secondly due to the increasing tensions in Syria and Iran.
In fact in overnight trade, crude had gone up by as much as $ 2.50 as China and Russia vetoed the UN resolution on Syria.
Meanwhile, Israel accused Iran and Lebanese group Hezbollah of carrying out a suicide bomb attack that killed six Israeli tourists in Bulgaria.