IPE Brent recovers after $5/bbl fall on terrorist blasts

London (Platts)--7Jul2005

Brent crude futures traded on London's International Petroleum Exchange were
paring initial heavy falls Thursday after a series of explosions aimed at
London's transport network caused widespread reported casualties, including
fatalities. Front-month August IPE Brent was trading at around $59.13/bbl by
1217 GMT, down just 72cts/bbl on Wednesday's settle, having fallen to an
intraday low of $55.55/bbl at around 1030 GMT in the immediate aftermath of
reports of the attacks. Having initially logged an all-time high of $60.70/bbl
on the first reports of the incidents, August Brent then fell over $5/bbl as
it became increasingly clear the incidents were terrorist-linked. "Traders
became nervous after reports of the London explosions came to light and
therefore started selling off their long positions," said one market player.
"As was the case after 9/11 the crude market crashed, just as it has done
Thursday morning after the explosions in London," one Brent analyst said. The
market appeared to be stabilizing as more traders reached their desks after
the severe transport disruption.

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