Article: Crude oil prices drop as Saudi Arabia says it favors Iraqi sale.(New York Mercantile Exchange)

WASHINGTON -- The announcement that Saudi Arabia favors the limited Iraqi crude sale toppled crude futures off their daily highs in New York Thursday, despite a weather-related rally in heating oil.

The March crude contract on the New York Mercantile Exchange (Nymex) settled down 3 cents at $17.71/bbl. But while sharply down on the daily highs of $18.08, the price still was within the recovery trend seen over the past two weeks, sources said.

Saudi Arabia's Ambassador to the United States, Prince Bandar Bin Sultan, said Riyadh backs the oil-for-food deal to be discussed by Iraq and a U.N. delegation next week, provided Baghdad agrees to the terms of Resolution ...

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