Azerbaijan, Baku, March. 14 / Trend /
Oil fell to a two-week low in New York on concern the earthquake in Japan will limit demand in the world's third-largest economy, Bloomberg reported.
Prices have dropped 5.6 percent since March 7, retreating for five days in the biggest decline since the period ended Feb. 7. Japan was struck by its largest temblor ever recorded on March 11, shutting refineries accounting for about 29 percent of domestic processing capacity, according to Bloomberg calculations based on Petroleum Association of Japan data. Canon Inc., Sony Corp. and Nippon Steel Corp. have halted operations at manufacturing facilities.
"With the closure of the factories and refineries in Japan we can expect the oil price to take a hit," said Ben Le Brun, an analyst at CMC Markets based in Sydney. "It's not good for their near-term growth prospects."
Oil for April delivery fell as much as $1.98, or 2 percent, to $99.18 a barrel on the New York Mercantile Exchange, the lowest intraday price since March 1. It was at $99.58 at 1:36 p.m. Singapore time. The contract tumbled $1.54 to $101.16 a barrel on March 11, the lowest settlement since March 1. Prices are up 25 percent from a year ago.
Brent oil for April settlement on the London-based ICE Futures Europe exchange dropped as much as $2.68, or 2.4 percent, to $111.16 a barrel, the lowest intraday level since Feb. 25. The contract fell $1.59, or 1.4 percent, to $113.84 on March 11.
Japan was struck by an 8.9-magnitude temblor that unleashed a 7-meter (23-foot) tsunami that may have killed 10,000 people in the north of the country.
