Brent crude oil futures dipped below $114 per barrel as
supply disruption concerns faded slightly. Worries about disruption to supply,
while still a significant factor, eased after the United States said it did not
believe Israel had made a decision to attack Iran.
U.S. Defense Secretary Leon Panetta, who visited Israel two
weeks ago, told reporters it was important that military action should be the
last resort. His remarks helped ease worries of a conflict after Israeli Prime
Minister Benjamin Netanyahu said that most threats to Israel's security were
dwarfed by the prospect that Iran could obtain nuclear weaponry.
Brent crude was down 33 cents at $113.70 per barrel after
ending up 43 cents at its highest settlement since May 3. U.S. crude fell 42
cents to $93.01 after closing 70 cents higher. Brent has swung between a high
of more than $128 per barrel and a low of $88.49 this year as investors' focus
has shifted between heightened Middle East supply worries and a weakening
growth outlook. The range of nearly $40 is the widest since 2009, when it was
$40.91. In 2011 the range was $34.65 and in 2010 $27.33.
