LONDON, July 25: Oil prices dropped below $74 per barrel on Tuesday as traders banked profits amid hopes of a ceasefire between Israel and Hezbollah militants despite continued Middle East violence, analysts said.
Crude futures had risen earlier on Tuesday, supported by violence in the Middle East, a big oil pipeline leak in Nigeria, and concerns over refinery shut-downs in the United States, dealers said.New York's main contract, light sweet crude for delivery in September, shed $1.10 to $73.95 per barrel in pit trading.
In London, Brent North Sea crude for September delivery lost $1.03 to $73.58 per barrel in electronic deals.
“The speed of the decline... points to profit takings, which could be related to market perception of the Middle East developments,” Calyon analyst Mike Wittner said.
Concern that the violence in Israel and Lebanon could spread to major crude-producing nations, such as Iran and Syria, had pushed oil prices to all-time highs above $78 earlier this month.
Earlier on Tuesday, prices had risen above $75 per barrel in London and New York.—AFP
