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. Last Updated: 07/27/2016

Oil Takes Iraq News in Stride

LONDON -- Oil prices rebounded Monday after an early slide, taking news of Iraq's acceptance of a United Nations oil-for-food plan in their stride.


Benchmark Brent blend futures for July delivery shed 79 cents to touch $16.75 a barrel on the International Petroleum Exchange before recovering to $17.72 by late afternoon.


"What we're seeing here is classic market behavior, which is to discount future events and also to overreact to news, so we may already have seen much of the impact," said Jim Placke, analyst at Cambridge Energy Research Associates.


Others agreed the market had plenty of time to get accustomed to the idea of a deal that would permit a partial resumption of Iraqi oil exports -- up to $2 billion worth of crude oil -- for the first time since the Gulf War.


Chief Iraqi negotiator Abdul Amir al-Anbari said the UN deal, which permits Iraq to sell up to $2 billion worth of crude oil over six months to buy food and humanitarian supplies, had been signed Monday. This was confirmed by the United Nations.