Crude prices drop to two-month low

Crude oil prices fell below 47 dollars per barrel Monday as Nigeria's main labor union called off a strike that had threatened to disrupt oil exports.

On the New York Mercantile Exchange, crude oil for December delivery fell 45 cents to settle at 46.87 dollars, the lowest close since September 20. Meanwhile, at London's International Petroleum Exchange, the December Brent crude-oil futures contract dropped 1.97 dollars to end at 40.34 dollars, the lowest close since September 10.

Nigeria Labor Congress - the biggest trade union in the country said Monday that it would suspend the nationwide strike planned to start tomorrow. The decision removed traders' worries over oil supply disruption in the world's No. 7 oil exporter.

Also on Monday, Iran told the United Nations that it agreed to a European Union proposal to voluntarily stop uranium enrichment starting November 22. The US had called for the UN Security Council to impose global sanctions on the nation.

Meanwhile, US inventories of crude oil had been increasing in the past seven weeks. A survey by Bloomberg News showed that crude-oil stockpiles probably posted a eighth-straight weekly increase, while supplies of distillate fuel would posted the first increase in nine weeks.

US Energy Department would release its weekly petroleum inventory report on Wednesday.

Source: Xinhua