Crude oil fell in New York, snapping four days of gains, as the dollar strengthened against the euro and analysts forecast an increase in U.S. gasoline supplies, signaling demand recovery in the largest crude user may falter. Futures slipped as U.S. equities dropped and the euro weakened from a five month high against the dollar after renewed signs of debt problems at European banks and countries such as Ireland and Portugal. An U.S. Energy Department report tomorrow may show gasoline stockpiles climbed to the highest level in six months.
“We really haven’t made any headway into stockpiles,” said Ben Westmore, a minerals and energy economist at National Australia Bank Ltd. in Melbourne. “Activity hasn’t improved. The crude market followed equity markets overnight.” The November contract lost as much as 40 cents, or 0.5 percent, to $76.12 a barrel in electronic trading on the New York Mercantile Exchange, and was at $76.26 at 10:54 a.m. Singapore time. Yesterday it added 3 cents to settle at $76.52. Prices are down 4 percent this year.
The dollar traded at $1.3428 per euro after rising 0.3 percent yesterday. A stronger U.S. currency limits investor need for assets to hedge against inflation. Brent crude oil for November delivery declined as much as 42 cents, or 0.5 percent, to $78.15 on the London based ICE Futures Europe exchange. Yesterday it fell 30 cents, or 0.4 percent, to settle at $78.57. November Brent’s premium to the corresponding West Texas future in New York narrowed to $1.96 a barrel today, down from $3.45 a week earlier.....Read The Entire Article.