As reported by The Wall Street Journal’s Ga-Woon Philip Vahn, crude oil futures tumbled in early Asian trade Monday following media reports that Osama Bin Laden has been confirmed dead, raising hopes that geopolitical risks in the oil-producing regions of the Middle East and Central Asia could be reduced.
The death of the man would likely have little immediate effect on political stability and oil production in countries such as Libya, however, so traders weren’t certain how the market would react in the longer run.
On the New York Mercantile Exchange, light, sweet crude futures for delivery in June traded at $112.33 a barrel, down $1.60 in the Globex electronic session. June Brent crude on London’s ICE Futures exchange fell $1.15 to $124.74 a barrel.
Spot gold prices were also sharply lower. The yellow metal fell from a new record of $1,576.52 an ounce to $1,545.30 an ounce.
The Wall Street Journal, citing a person familiar with the situation, said Al Qaeda leader Osama bin Laden has been killed, and the U.S. has his body in its possession.
Nymex reformulated gasoline blendstock for June–the benchmark gasoline contract–fell 254 points to $3.3730 a gallon, while June heating oil traded at $3.2464, 294 points lower.
ICE gasoil for May changed traders‘ hands at $1,029.00 a metric ton, down $4.50 from Friday’s settlement.