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Bin Laden's death affects oil prices

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Bin Laden's death affects oil prices
At 11.35 last night President Obama announced "the United States has conducted an operation that killed Osama bin Laden, the leader of al Qaeda, and a terrorist who's responsible for the murder of thousands of innocent men, women, and children." in Washington, DC, on May 1, 2011. This picture of bin Laden was a government exhibit for the sentencing trial of Zacarias Moussaoui, a confessed al-Qaida conspirator for the 9/11 attacks on the World Trade Center and Pentagon, in April 2006. UPI/FILES | License Photo

NEW YORK, May 2 (UPI) -- Oil prices in New York trading fell nearly 2 percent following reports that al-Qaida leader Osama bin Laden was killed by U.S. forces in Pakistan, traders said.

U.S. Special Operations forces in Pakistan killed bin Laden during a long-planned raid early Monday. Oil futures fell as much as 1.7 percent on the heels of the report and one analyst said that's a good thing for energy prices.

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"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 Bloomberg News.

Oil and gasoline prices soared to post-recession highs this year as global economies moved out of recession, the value of the U.S. dollar fell and NATO forces invaded Libya, one of Africa's top oil producers.

Paul Sullivan, a professor at Georgetown University, wrote last week in al-Arabiya that al-Qaida is keen on targeting oil facilities in Saudi Arabia, the largest oil producer in the world.

Much of the oil transported through the Middle East and North Africa travels near major conflict zones in Bahrain, Egypt and Saudi Arabia. Pipelines for oil and natural gas are often the target of sabotage.

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