The price of oil fell from a 32-month high in London today (April 11th) after a ceasefire plan as agreed between the African Union and Libyan leader Muammar Gaddafi.
Crude oil declined 0.9 per cent on hopes that the breakthrough will see oil exports from the North African country recover following recent fighting, Bloomberg reports.
Eugen Weinberg, head of commodity research at Commerzbank in Frankfurt, stated that the current oil price is too high and this, coupled with the developments in Libya, is seeing some correction occur.
"Oil is falling because of the peace talks in Libya and also because the recent price increases are considered excessive. Current prices aren't justified by the supply-and-demand ratio," he told the news provider.
In other commodities trading news, gold could retreat on the back of profit taking after surging to recent highs, Bloomberg reports.
James Moore, an analyst at TheBullionDesk.com, said in a note to clients that fresh concerns over European Union debt could still support the precious metal.
