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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