Oil Prices Dip Amid Rumors of Iraqi Coup but Stay Above $30

Oil prices dipped this morning on unfounded rumors that Iraqi President Saddam Hussein had been ousted in a coup, but prices stayed above $30 per barrel as traders sold futures to pocket their profits from Thursday’s price surge.

“I don’t really think there’s anything in terms of hard news,” said William Byers, an analyst with Bear, Stearns & Co. “I think there’s simply some profit-taking after the market ran up yesterday.”

In late-morning trading on the New York Mercantile Exchange, light sweet crude was down 70 cents to $30.74 per barrel on October contracts. On Thursday, oil had shot above $30 per barrel on the Merc for the second time during the Middle East crisis that began Aug. 2. The Merc had not seen $30 oil since November, 1985.

Unleaded gasoline was down .22 cent to 94.85 cents per gallon this morning for October delivery, while home heating oil was down 1.84 cents to 86.40 cents for October delivery.

Natural gas was down to $1.501 per 1,000 cubic feet after closing Thursday at $1.530.