U.S. crude futures fell on Monday, reversing direction as the dollar bounced off early lows and as Wall Street slumped after opening higher. Sources also said crude's earlier rise above $81 a barrel, which failed to take out the 2009 peak of $82 from last week, and mild U.S. weather provided pressure on heating oil.
The dollar rallied from 14 month lows versus the euro as riskier assets like commodities and U.S. equities fell. The dollar struggled earlier after an opinion piece in a Chinese newspaper said China should increase its holdings of euros and yen in its foreign reserves. U.S. stocks fell, dragged lower by materials and financial shares, erasing earlier gains.
"Crude is trying to consolidate and it's definitely sensitive to swings in the dollar," said Gene McGillian, analyst at Tradition Energy in Stamford, Connecticut ......Read the entire article.
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