Oil price down more than $8 in two days

Wednesday, July 09, 2008 |
VIENNA, Austria (AP) — The price for a barrel of oil fell nearly $5 today, a two-day swing of more than $8 as traders took profits and fears of a supply disruptions eased.
But analysts warned the pullback could be fleeting.
“The plunge is really a temporary bull correction and is viewed by the market as a buying opportunity,” said Victor Shum, an analyst with Purvin & Gertz in Singapore. “We are also seeing the U.S. dollar easing a bit ... and that has helped support oil pricing.”
Trader and analyst Stephen Schork said the expectation just a few days ago that crude prices would touch $150 this week now “does not look like the proverbial done deal.”
“Be that as it may, we have seen this movie before, i.e. crude oil weakens a little and the bubble-bears jump in,” he added in his Schork report, suggesting the price respite might be temporary.
Sweet crude for August delivery fell $4.63 to $136.74 a barrel in electronic trade on the New York Mercantile Exchange. On Monday, the contract fell $3.92, or about 2.7 percent, to settle at $141.37 in New York.
Oil hit a trading record of $145.85 on Thursday before settling at a record close of $145.29 a barrel.
August Brent crude also lost heavily, dropping by $4.63 to $137.24 barrel on the ICE Futures exchange in London.
Official: Pakistan may be linked to blast
KABUL, Afghanistan — Afghan officials have evidence that foreigners were behind a massive suicide bombing against India’s embassy in Kabul, President Hamid Karzai’s spokesman said today, implying that Pakistan orchestrated the attack.
The spokesman, Humayun Hamidzada, did not name Pakistan’s intelligence agency but told reporters it was “pretty obvious” who was behind Monday’s bombing, which killed 41 people and wounded 150.
An Afghan security report released earlier today found that the bombing could not have succeeded without the support of foreign intelligence agencies, another reference to Pakistan, India’s archrival.
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