Crude oil fell for the first time in three days as the dollar strengthened against the euro, limiting the appeal of commodities as an alternative investment. Oil dropped as much as 2 percent as the dollar rose to a three month high against the European currency and U.S. equities declined. Futures are 12 percent below the year’s high of $82 a barrel reached Oct. 21. U.S. oil supplies are 6.4 percent above the five year average, the Energy Department said yesterday.
“The dollar’s stronger, and that’s for the most part the big thing here,” said Carl Larry, president of Oil Outlooks & Opinions LLC in Houston. Crude oil for January delivery fell 70 cents, or 1 percent, to $71.96 a barrel at 1:50 p.m. on the New York Mercantile Exchange. Earlier, futures touched $71.21 a barrel. Oil has risen 61 percent this year. The dollar strengthened to $1.4329 per euro at 1:51 p.m. in New York from $1.4531 yesterday. Earlier it touched $1.4305, the highest since Sept. 7......Read the entire article.
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