Oil prices fall further
World oil prices, which had threatened to break the symbolic $120 a barrel level, fell further on Friday after a strengthening US dollar and rising US crude stockpiles prompted traders to lock in profits, dealers said.
By Agencies |
SINGAPORE: World oil prices, which had threatened to break the symbolic $120 a barrel level, fell further on Friday after a strengthening US dollar and rising US crude stockpiles prompted traders to lock in profits, dealers said.
New York's main oil futures contract, light sweet crude for delivery in June, slid 46 cents to $115.60 per barrel.
The benchmark contract closed down $2.24 at $116.06 a barrel during floor trading yesterday at the New York Mercantile Exchange.
The May contract had struck a record high of $119.90 before expiring on Tuesday.
London's Brent North Sea crude for June delivery yesterday settled $2.12 lower at $114.34 a barrel after earlier hitting a record intraday peak of $116.87.
In the foreign exchange market yesterday, the dollar gained in value against the euro amid speculation the US Federal Reserve soon might end its campaign of cutting interest rates.
The single European currency traded below $1.57 today, three days after it had crossed $1.60 for the first time.
"It seems that a larger-than-expected increase in US crude inventories during last week and a stronger dollar were good excuses for some investors to book profits," Sucden analyst Andrey Kryuchenkov said.
A stronger US currency makes dollar-priced crude more expensive for foreign buyers, tending to discourage demand.
Most analysts expect the Fed to lower its key interest rate by a quarter point at its policy-setting meeting next Tuesday and Wednesday.
New York's main oil futures contract, light sweet crude for delivery in June, slid 46 cents to $115.60 per barrel.
The benchmark contract closed down $2.24 at $116.06 a barrel during floor trading yesterday at the New York Mercantile Exchange.
The May contract had struck a record high of $119.90 before expiring on Tuesday.
London's Brent North Sea crude for June delivery yesterday settled $2.12 lower at $114.34 a barrel after earlier hitting a record intraday peak of $116.87.
In the foreign exchange market yesterday, the dollar gained in value against the euro amid speculation the US Federal Reserve soon might end its campaign of cutting interest rates.
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The single European currency traded below $1.57 today, three days after it had crossed $1.60 for the first time.
"It seems that a larger-than-expected increase in US crude inventories during last week and a stronger dollar were good excuses for some investors to book profits," Sucden analyst Andrey Kryuchenkov said.
A stronger US currency makes dollar-priced crude more expensive for foreign buyers, tending to discourage demand.
Most analysts expect the Fed to lower its key interest rate by a quarter point at its policy-setting meeting next Tuesday and Wednesday.
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