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Oil Drops as Flows Unhindered Following Coup Attempt in Turkey

Oil declined following a failed coup in Turkey as shipments continued through the vital conduit from Russia and Iraq to the Mediterranean Sea.

Futures slid 1.6 percent in New York. Oil tankers are loading and unloading at Turkey’s ports, and supplies are arriving in pipelines from neighboring countries, an Energy Ministry official said Sunday, asking not to be identified in line with ministry rules. President Recep Tayyip Erdogan ordered reprisals for the attempt to oust him. The oil price recovery will remain volatile amid mounting risks, BMI Research wrote in a note.

Turkey oil, natural gas pipelines, refineries and storage tanks

The situation in Turkey “is far from settled. If we were in a tight market where inventory had been run down, this would matter a lot, but we have inventory acting as a buffer,” Amrita Sen, chief oil economist for Energy Aspects Ltd. in London, said by telephone.

West Texas Intermediate crude for August delivery fell 71 cents to settle at $45.24 a barrel on the New York Mercantile Exchange, reversing gains in the two previous sessions.

Brent for September settlement declined 65 cents, or 1.4 percent, to end the session at $46.96 a barrel on the London-based ICE Futures Europe exchange. The global benchmark crude traded at a premium of $1.02 to WTI for September.

Turkish Straits

The Turkish Straits, including the Bosphorus and Dardanelles, are among the world’s major...