BLBG: Crude Prices Fall in New York, London After Libya Announces Cease Fire
Oil dropped from its highest in a week in New York as Libya, holder of Africa’s largest crude reserves, said it is ceasing all military action and will start talks with opposition forces.
Oil for April delivery fell as much as $1.04, or 1 percent, to $100.38 a barrel on the New York Mercantile Exchange, and traded at $100.95 as of 1:01 p.m. London time. It had earlier climbed $2.24 to $103.66 a barrel, the highest since March 10. Brent crude for May settlement fell 1.6 percent to $113.07 a barrel, having earlier advanced to $117.29.
“The oil market has come off with the announcement, but this does not mean we’re near a resolution of the situation in Libya,” said Harry Tchilinguirian, head of commodity-markets strategy at BNP Paribas SA in London. “We may be facing an entrenched status quo between pro and anti-Qaddafi groups.”
Libyan Foreign Minister Moussa Koussa announced the decision today in a televised news conference broadcast by Al Arabiya TV.
To contact the reporter on this story: Grant Smith in London at gsmith52@bloomberg.net
To contact the editor responsible for this story: Stephen Voss on sev@bloomberg.net
