Oil Falls Below $ 99 As U.S. Dollar Rallies
Oil prices fell below $ 99 a barrel in Asia today, crude more expensive for investors with other currencies in the midst of rising U.S. dollar.
Benchmark crude June delivery fell 84 cents and $ 98.81 per barrel at midday in electronic commerce in Singapore at the New York Mercantile Exchange. The agreement was terminated $ 99.65 a barrel on Friday, 68 cents.
London Brent June delivery fell 44 cents $ 113.39 a barrel on the ICE Futures Exchange.
Oil has fallen from a peak of almost 30 months $ 115 earlier this month, the dollar has strengthened.
“Oil is still in the shadow of the big dollar,” said Ritter Busch and Associates in a report. “We look for strong negative correlation between the dollar and oil.”
The euro fell to U.S. $ 1.4089 $ 1.4110 Friday. The euro rose to U.S. $ 1.49 earlier this month.
Analysts are also closely monitored for signs of escalating fuel prices fuel U.S. more than $ 4 a gallon in some areas of gross consumption tax.
Barack Obama said Saturday that the U.S. could increase oil production through expansion of existing leases in the Gulf of Mexico and offshore Alaska and the holding of sales of rental a reserve of more frequent oil in Alaska government.
However, Obama said the measures would not immediately reduce the price of gasoline. In Nymex trading in contracts for heating oil in June fell 1.6 cents to $ 2.93 a gallon and gasoline fell 0.7 percent to $ 3.01 a gallon. The natural gas was unchanged at $ 4.25 per 1000 cubic meters.
This will affect the market badly.Ups very low and never gave a good result in one of the oil country.Crude affect not only the U.S. but many other countries that have been made by it.Lets hope that the government action to obtain a solution to this problem.
ICE Futures Exchange
Gulf of Mexico and offshore Alaska
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