, Brent oil price sinks under $72 as the Euro looses ground, WTI oil price trading down 3 percent on firm US dollar Index, BP shares in freefall down
Oil prices retraced to $75 amid ongoing Euro concerns
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Oil prices hovers around $72 mark on US dollar gains
Crude oil prices open trading on Wednesday hovering around the $72 a barrel mark as the US dollar one again makes gains against the Euro and other major world currencies.
US Light crude oil futures for July delivery traded at $72.08 a barrel at 0611 GMT on the NYMEX, while in London, Brent crude oil futures for July delivery fell 46 cents to $72.25 a barrel on the ICE Futures Exchange.
The dollar index, which measures the US currency against a basket of six others, advanced 0.2% to 86.74, although the dollar was down 0.8% against the British pound at $1.466.
A stronger dollar versus the euro and other currencies weighs on oil prices as it makes the commodity much more expensive to buy for holders of other currencies. The euro is trading near a four-year low against the dollar, under pressure after the downgrade of Spain’s sovereign debt and the European Central Bank’s estimate of bank losses.
Asian stock markets opened lower on Wednesday which will probably have a negative effect on oil prices, yesterday the Dow Jones closed over one percent lower at 10,024.02.
Crude oil prices fall four percent on gloomy US jobs data, news updated June 05, 2010
Crude oil prices have fallen over four percent in late trading on Friday, hit by weaker than expected US payrolls data and a stronger US dollar, with the Dow Jones closing under the 10,000 mark.
US Light sweet crude oil futures for July delivery closed trading at $71.51 a barrel on the NYMEX, while in London, Brent crude oil futures ended at $71.71 a barrel on the ICE Futures Exchange.
The latest US jobs data showed that the private sector created only 41,000 jobs however most analysts had expected 226,000 private payrolls to be added.
“The US payroll figures did manage to surprise the oil market on the negative side,” said Sucden research analyst Myrto Sokou in London.
The data sent stock markets and oil prices sharply lower in trading and the Dow Jones finished the week under the 10,000 mark and down over three percent.
Meanwhile, the US dollar surged to its highest level against the euro in more than four years which tends to have a negative effect on oil prices. The euro sank as low as $1.1956, its weakest level since it bought $1.1920 in March 2006 and well below the $1.2182 it bought in New York late Thursday.
Oil prices fall under $70 on new European debt concerns, news updated June 07 2010
Crude oil prices have fallen under $70 in early trading on Monday as concerns the government debt crisis in Europe will widen, slowing a global recovery in fuel demand.
US Light crude oil futures for July delivery fell to $69.51 a barrel on the NYMEX, while in London, Brent crude oil futures for July delivery dropped over two percent, to $70.50 a barrel, on the ICE Futures Exchange.
Oil prices were poised for their biggest two-day decline in a month as the euro dropped against the dollar and the MSCI Asia Pacific Index tumbled by the most in 14 months amid concern of losses in Hungary.
The euro fell to $1.1922 from $1.1967 in New York and touched $1.1877, the lowest level since March 2006, on concern Europe’s debt crisis will slow global growth. The MSCI Asia Pacific Index retreated 3.3 percent to 109.70 as of 1:20 p.m. in Tokyo, set for its biggest decline since March 30, 2009. The gauge has slumped 15 percent from its high this year on April 15.
OPEC member countries consider oil prices should rise above $65
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If crude oil prices drop to $65 a barrel then some OPEC member countries may consider the price is too cheap, Kuwait’s oil minister said, declining to comment on any action that the group might take to support prices.