posted on Jun, 28 2004 @ 04:14 PM
The price of oil fell sharply on Monday, as traders appeared to view the transfer of political power in Iraq as a step that could help reduce attacks
against the country's oil infrastructure. Light crude for August delivery traded at $36.31 per barrel in midafternoon trading on the New York
Mercantile Exchange, down $1.24, or 3.3 percent.
Oil prices hit a record $42 a barrel in May, driven by strong global demand, supply bottlenecks and fears about continuing violence and unrest in
Instability in both Iraq and Saudi Arabia, the world's biggest oil exporter, has fuelled oil price rises in the last couple of months.
The head of Iraq's State Oil Marketing Organisation said on Monday that exports from the country's two southern ports were now close to two million
barrels a day (bpd).
Iraq's oil infrastructure has been repeatedly targeted by insurgents, holding oil production well below a pre-war capacity of 2.2 million bpd.
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