Oil prices dips in NY

Oil price dips in New York after bin Laden slain

Agence France-Presse

First Posted 08:06:00 05/03/2011

NEW YORK—Oil prices slipped slightly in New York Monday, after briefly

surging near $115 a barrel, as investors weighed the impact of the US

killing of Al-Qaeda mastermind Osama bin Laden.

New York's benchmark futures contract, West Texas Intermediate for

June delivery, closed at $113.52 a barrel, down 41 cents from Friday.

London financial markets were closed for the May Day holiday.

The New York session was a "very choppy day," said Matt Smith at

Summit Energy, as investors digested news that US forces had killed

bin Laden Sunday in a raid on his compound in Pakistan.

The initial reaction was bearish for the market because it appeared

his death would ease unrest in the Middle East, Smith said.

But eventually, "people realized that it will increase uncertainty

more than add clarity," he said.

The WTI contract initially had plunged to $110 on the news of bin

Laden's death.

But it rapidly reversed course and headed upward, climbing as high as

$114.83, the highest peak since September 22, 2008, before easing

back.

Rich Ilczszyn of Lind Waldock said his first thought upon learning of

the terrorist leader's death was to "buy equity, buy the dollar and

sell crude oil, and I think a lot of traders jumped into that trade."

After further reflection, however, he concluded: "It's probably going

to increase tensions."