Dragon Oil falls on route concerns

DRAGON OIL, the Dubai-based explorer operating in Turkmenistan, fell the most in a week in London trading as concerns grew that its export route through Iran may be disrupted.

“People have taken profits since the peak in May because they’re concerned about the political risk in Iran, through which Dragon Oil exports 80% of its crude,” said Elena Savchik, an oil analyst at Renaissance Capital Finance Ltd, who recommends buying Dragon.

“It’s sentiment rather than fundamental and not justified in our view,” she said.