Oil: what goes up must come down

Crude oil prices have fallen as investors focused again on the grim economic situation.

Traders also were selling to take profits after the sharp gains in previous sessions.

Prices had jumped on geopolitical worries after Iran said it had successfully tested medium-range missiles capable of hitting Israel as a response to threats of attack, further stoking tension between Tehran and the West.

Tuesday’s price rise was also supported by expectations for more monetary policy stimulus, from central banks.

Also pushing up prices, Norwegian trade unions put off a decision to escalate a strike by offshore oil and gas workers until Friday, extending their battle with employers to nearly two weeks.

On Wednesday afternoon Brent crude oil was hovering around $100 per barrel after rising more than three percent in the previous session. Partly the rise was because traders were covering their positions before the US Independence Day holiday.

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