Oil Drops From 10 Month High as Stocks Fall, Dollar Strengthens

Crude oil dropped from a 10 month high as concerns that China may tighten lending and more U.S. loans may default pushed equities lower and strengthened the dollar, reducing the investment appeal of commodities. Oil declined as investors sought so called safe haven assets such as the dollar over commodities. Oil also fell in tandem with equities on concern that the Chinese government would curb new loans and SunTrust Banks Inc. said that U.S. lenders face more credit losses and commercial real estate may falter through 2010. “Equity and oil markets have been very closely correlated in the last six months,” said Ben Westmore, an energy and minerals economist at National Australia Bank Ltd. in Melbourne.....Complete Story