LONDON, 6 March 2007 — World oil prices fell heavily yesterday as traders sought to limit their exposure to high-risk investments amid continued stock market uncertainty, dealers said.
The oil market also tracked news from Royal Dutch Shell, which said a major oil spill in a production facility in southern Nigeria had reduced output by 187,000 barrels per day.
In London, the price of Brent North Sea crude for April delivery tumbled $1.53 to $60.55 per barrel in electronic deals.
New York’s main oil futures contract, light sweet crude for delivery in April, slid $1.46 to $60.18 per barrel in floor trading.
European and Asian share prices plunged again yesterday as turbulent trading conditions stretched into a second week, dealers said. However, Wall Street rebounded following initial sharp losses.
Equities began tumbling last week as investors sought to take profits from high stock prices and cut their exposure to risk amid warnings of a strong correction to markets after many indices hit multi-year peaks earlier in the year.
In Nigeria meanwhile, a Shell official told AFP that there had been a spill at Nembe Creek Trunk Line, which led to a total output loss of 187,000 barrels per day.
Meanwhile, the yen struck three-month highs against the the dollar and the euro on Monday, further boosted by the effects of the global stock market slump, dealers said.
The Japanese currency has risen by about 5.0 percent since a week ago, as speculators scale back riskier investments funded by cheap Japanese credit.
On the London Bullion Market, the price of gold slumped to $636.75 per ounce, from $664.50 late on Friday.