Analysts speculated that one result of U.S. special forces killing Osama bin Laden on Sunday is reduced risk of disruptions of supplies from oil-rich regions in North Africa and the Middle East. The energy commodity had been slipping as a result of demand waning in China, the globe's top consumer of the commodity and owner of the quickest-growing economy that the nation is working on slowing down.
"Good news on the geopolitical front has the potential to move prices back below $100," Ric Spooner, chief market analyst at CMC Markets in Sydney, told the wire service.
At 12:36 p.m. on Monday, Brent crude oil futures dropped 0.45 percent, a 0.57 cent drop to $125.32 per barrel.
The founder of al Qaeda represented geopolitical uncertainty and was a direct association to terrorism and threats, Sponer said.
His death "carries hope of reduced threats of terrorism and political risk in northern Asia and the Middle East," Spooner said.
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