Oil price falls as supply fears evaporate

Crude oil prices fell this week on evaporating fears of supply disruption from Iran and Nigeria, although the market was supported by positive Chinese and US economic data

London Brent crude futures were around $111 a barrel on Thursday compared with $113/b the week before. US WTI was trading at around $101/b, down from last week’s $102/b.Prices fell after initial fears about Iran closing the Strait of Hormuz – cutting a fifth of the world’s global oil supply – were allayed. The market was concerned by the Tehran government’s threats to shut the vital trade waterway, after the US and EU imposed sanctions against the country in response to its nuclear programme. But the rhetoric has since toned down. And in Nigeria, oil unions backed down from threats to shut in the country’s oil exports, and remove 2 million barrels a day (b/d) from world supply, after the fed