Crude oil fell for a fifth day, its longest losing streak in a month, as the dollar gained against the euro, curbing demand for commodities as a currency hedge. Oil is heading for its first weekly decline in five weeks after a U.S. government report showed crude stockpiles rose for a second straight week. The International Energy Agency kept its forecast for 2010 global crude demand unchanged at 86.3 million barrels a day in a monthly report today. “The second build in crude stocks has made the oil market more sensitive,” said Joern Quitzau, a Hamburg based economist at Berenberg Bank.
“The mood has changed for the oil market this week.” Crude oil for February delivery fell as much as 82 cents, or 1 percent, to $78.57 a barrel in electronic trading on the New York Mercantile Exchange, and traded at $78.80 at 1:46 p.m. London time. A close at that level would mean a drop of 4.8 percent this week. The dollar gained the most in almost a month against the euro as Greece’s struggles with its budget deficit dented confidence in the region. The dollar traded as high as $1.4359 against the euro.
“If the economy is improving there is an expectation oil stocks will start to fall, but it’s not happening,” said Frank Schallenberger, head of commodities research at Landesbank Baden-Wuerttemberg. “The dollar is an extra point for today”.....Read the entire article.
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