World crude oil prices fell Thursday on Zarqawi's death.

New York's main contract, light sweet crude for delivery in July, fell 47 cents to finish at 70.35 dollars.

In London, Brent North Sea crude for July delivery dropped 14 cents to settle at 69.05 dollars, after touching as low as 67.73 dollars a barrel.

The United States claimed on Thursday that Abu Musab al-Zarqawi, the most wanted terrorist and al-Qaida's leader in Iraq, was killed during a U.S. air strike near Baquba, 60 km north of Baghdad, on Wednesday. That prompted speculation the attacks and sabotage that have curtailed Iraqi oil exports will ease.

U.S. President George W. Bush said Thursday that the killing al- Zarqawi was a victory in the anti-terror war and a severe blow to the terrorist organization.

The U.S. Energy Department said Wednesday that its inventories of commercial crude oil, gasoline and other refined fuels were up in the week ending June 2.

Source: Xinhua