LONDON, 9 June 2006 — World oil prices fell under $70 per barrel yesterday following news of the death of Al-Qaeda chief’s in Iraq, analysts said. New York’s main contract, light sweet crude for delivery in July, sank by 1.32 dollars to $69.50 per barrel in pit trading. At around 1615 GMT, the contract touched $69.10 — the lowest level since May 22. In London, Brent North Sea crude for July delivery dropped 1.02 dollars to $68.17 per barrel in electronic deals. In afternoon trade it fell to $67.73 — last seen on May 22.
“On the geopolitical front, news today that the Al-Qaeda’s political leader in Iraq, Abu Musab Al-Zarqawi, was killed has added to the easing of concerns over Iran,” said Barclays Capital analyst Kevin Norrish.
Added to the picture was news that five South Koreans taken hostage by Nigerian militants were freed yesterday, according to the Movement for the Emancipation of the Niger Delta (MEND), which had been holding them.