Crude oil dropped for a fourth day, trading below $75 a barrel as the dollar gained amid speculation the U.S. Federal Reserve will start raising interest rates. Oil closed at its lowest level since Oct. 14 last week after a better than forecast U.S. jobless report bolstered the dollar. Commodities including gold and oil typically weaken when the dollar appreciates. Traders have raised their expectations that the Fed will lift interest rates early next year.
“We’re seeing continued follow-through from the jobs data, fueling talk that the Federal Reserve may need to consider raising interest rates, strengthening the dollar,” said Tom Bentz, a senior energy analyst at BNP Paribas Commodity Futures Inc. in New York. Crude oil for January delivery fell $1.02, or 1.4 percent, to $74.45 a barrel at 10:55 a.m. on the New York Mercantile Exchange, marking the first four day decline since August. Prices have climbed 67 percent this year.
The dollar increased to $1.4827 per euro from $1.4858 in New York at the end of last week. The dollar weakened this year as the Federal Reserve kept benchmark interest rates near zero since December 2008 to revive lending after the worst financial crisis since World War II.....Read the entire article.
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