Related News
Oil falls back below US$70 even as dollar weakens
Source: Agencies |
September 12, 2009, Saturday
|
Online Edition
Online Edition
OIL prices fell sharply yesterday, giving up some of the gains crude made this week even as the dollar fell to a fresh low for 2009.
Benchmark crude for October delivery tumbled US$2.65 to US$69.29 a barrel on the New York Mercantile Exchange. On Thursday, the contract rose 63 cents.
Gasoline, heating oil and natural gas prices also were down. Natural gas prices had jumped 15 percent on Thursday and then fell 9 percent yesterday.
Oil had been up more than US$4 this week and rose as much as 96 cents to US$72.90 yesterday as investors eyed rising stock markets and a slumping US dollar, but the rally stalled yesterday.
Crude is priced in dollars so it becomes cheaper when the dollar falls. Some investors also use commodities such as oil and gold as a hedge against inflation and dollar weakness. Gold was back above US$1,000 an ounce yesterday.
Addison Armstrong of Tradition Energy said this week's increase in crude prices was not justified and called yesterday's sell-off a "nice dose of profit-taking."
"The demand picture for refined products remains very weak and supplies are very robust," he said.
Signs of an improved economic outlook have fueled optimism for growing demand for crude around the world. Still, demand for crude remains poor and supplies of gasoline, diesel fuel and heating oil are at high levels.
Even with the swings this week, Armstrong said crude has remained stuck in a range between US$67 and US$75 since early August.
The 16-nation euro bought US$1.4613 in European trading, up from US$1.4585 late Thursday in New York and the highest level so far in 2009.
In other Nymex trading, gasoline for October delivery fell 4.38 cents to US$1.7598 a gallon, and heating oil declined 4.77 cents to US$1.7308 a gallon. Natural gas was off 29.6 cents to US$2.96 per 1,000 cubic feet.
In London, Brent crude fell US$2.23 to US$67.66 on the ICE Futures Exchange.
Benchmark crude for October delivery tumbled US$2.65 to US$69.29 a barrel on the New York Mercantile Exchange. On Thursday, the contract rose 63 cents.
Gasoline, heating oil and natural gas prices also were down. Natural gas prices had jumped 15 percent on Thursday and then fell 9 percent yesterday.
Oil had been up more than US$4 this week and rose as much as 96 cents to US$72.90 yesterday as investors eyed rising stock markets and a slumping US dollar, but the rally stalled yesterday.
Crude is priced in dollars so it becomes cheaper when the dollar falls. Some investors also use commodities such as oil and gold as a hedge against inflation and dollar weakness. Gold was back above US$1,000 an ounce yesterday.
Addison Armstrong of Tradition Energy said this week's increase in crude prices was not justified and called yesterday's sell-off a "nice dose of profit-taking."
"The demand picture for refined products remains very weak and supplies are very robust," he said.
Signs of an improved economic outlook have fueled optimism for growing demand for crude around the world. Still, demand for crude remains poor and supplies of gasoline, diesel fuel and heating oil are at high levels.
Even with the swings this week, Armstrong said crude has remained stuck in a range between US$67 and US$75 since early August.
The 16-nation euro bought US$1.4613 in European trading, up from US$1.4585 late Thursday in New York and the highest level so far in 2009.
In other Nymex trading, gasoline for October delivery fell 4.38 cents to US$1.7598 a gallon, and heating oil declined 4.77 cents to US$1.7308 a gallon. Natural gas was off 29.6 cents to US$2.96 per 1,000 cubic feet.
In London, Brent crude fell US$2.23 to US$67.66 on the ICE Futures Exchange.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
