Crude oil in New York fell to the lowest level in six weeks as Dubai’s attempt to reschedule its debt bolstered the dollar and prompted investors to sell commodities.
Oil dropped as much as 7.1 percent as the U.S. currency climbed, dulling the appeal of raw materials as an alternative investment, and equities tumbled. Dubai World, the government investment company burdened by $59 billion of liabilities, sought to delay repayments, raising concern that worsening defaults may hold back the global recovery.
“The situation in Dubai revives worries about the recovery of the economy,” said Adam Sieminski, chief energy economist at Deutsche Bank AG in Washington. “The strength of the recovery has an obvious and immediate impact on both oil demand and prices.” Crude oil for January delivery declined $2.28, or 2.9 percent, to $75.68 a barrel at 12:09 p.m. on the New York Mercantile Exchange. Futures touched $72.39, the lowest since Oct. 12. On a closing basis the market is heading for the biggest drop since Nov. 12. New York oil futures didn’t settle yesterday because of the Thanksgiving holiday. Floor trading and electronic trading will end at 1:45 p.m. today, instead of the normal closures at 2:30 and 5:15 p.m......Read the entire article.
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