Crude oil fell from a one year high as U.S. equities dropped and the dollar rebounded, reducing the appeal of commodities as an alternative investment. Oil declined for the first time in nine days as a disappointing report on housing starts overshadowed better than estimated earnings at companies from Apple Inc. to Pfizer Inc. Futures traded above $80 early today as the Dollar Index, which measures the greenback against six major currencies, weakened to its lowest level since August 2008.
“Oil is mainly taking its cue from what’s happening in the financial markets,” said Jim Ritterbusch, president of Ritterbusch & Associates, a Galena, Illinois, consultant. “This shouldn’t be too much of a surprise after the good run we’ve had to the upside.” Crude oil for November delivery fell 81 cents, or 1 percent, to $78.80 a barrel at 10:39 a.m. on the New York Mercantile Exchange. Earlier, prices rose as much as 0.6 percent to $80.05 a barrel, the first time the front-month contract has traded above $80 since Oct. 14, 2008. Futures are heading for the biggest drop since Oct. 7. The November contract expires today. More active December futures declined 84 cents.....Read the entire article.
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