Oil Prices Fall after Gaddafi Reported Dead

Oil traded near its lowest in four days in New York, giving up gains following reports that deposed Libyan leader Muammar Gaddafi was killed by rebel forces.

West Texas Intermediate crude was little changed on the New York Mercantile Exchange, erasing an earlier gain of 1%. Prices had risen on speculation European Union leaders will reach agreement on enhancing their rescue fund. Libyan ruling council fighters captured Gaddafi in his hometown of Sirte, Al Jazeera television reported, citing unidentified people.

“These are political markets right now,” said Carsten Fritsch, an analyst in Frankfurt at Commerzbank AG told Bloomberg. The bank was the fourth most-accurate forecaster of Brent prices in the third quarter. “Risk aversion is back.”