Oil prices dipped by 1% on Monday after BP revealed plans to keep half its Prudhoe Bay oilfield pumping while carrying out pipeline repairs, and a truce was brokered by United Nations in the Middle East. U.S. light, sweet crude dipped to US$73.70 a barrel and London Brent dropped to US$75.09 a barrel.
Oil prices also eased after U.N. Security Council resolution called for an end to the month-long war between Israel and Hizbollah, although fighting was still raging hours before the truce was to take effect. As per the United Nations, Israeli and Lebanese leaders had agreed that truce would begin from 0500 GMT on Monday, although diplomats warned that it was likely to be a fragile one.
Oil prices have risen by over 20% so far this year. A plethora of geo political factor shave contributed to this rise, including a 25% cut in supplies by militants in Nigeria and Iran's stand-off with the West over its nuclear program. Soaring prices, however, have yet to translate into a significant drop in consumption.
14-Aug-06 
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