Oil Drops as Japan’s Demand Loss Outweighs Middle East Tension
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Oil fell to its lowest price in almost three weeks in London as concern that damage from Japan’s earthquake may limit crude demand outweighed speculation of supply disruptions in the Middle East.
Brent crude slid as much as 4.5 percent as factories, power plants, and about 29 percent of refining capacity remained shut in the world’s third-largest crude user following the March 11 temblor, the strongest in Japan’s history. Saudi Arabia sent troops into Bahrain in response to a request from its neighbor following demonstrations by Shiite protesters there.