Crude oil fell the most in a month as a stronger dollar reduced the appeal of commodities and on speculation that U.S. inventories increased. Oil dropped as much as 2.6 percent as the dollar climbed against the euro after China took steps to curb lending and as Greece’s bonds tumbled. Prices also decreased on speculation that a government report tomorrow will show that U.S. stockpiles rose last week. “We continue to be at the mercy of the financial markets,” said Gene McGillian, an analyst and broker at Tradition Energy in Stamford, Connecticut. “Investors now treat oil as an asset class.”
Crude oil for February delivery fell $1.85, or 2.3 percent, to $77.17 a barrel at 11:17 a.m. on the New York Mercantile Exchange. Oil is heading for the biggest one day decline since Dec. 9. The February contract expires today. The more active March contract declined $1.78, or 2.2 percent, to $76.54. Chinese regulators asked some of the nation’s banks to limit credit after banks lent a record 9.59 trillion yuan ($1.4 trillion) last year. Cuts in Greece’s credit rating last month fueled investor concern that the country could be forced out of Europe’s single currency. The dollar traded at $1.41 per euro, up 1.3 percent from $1.4288 yesterday. The greenback touched $1.4093, the highest level since Aug. 19. A stronger dollar reduces the appeal of commodities as an alternative investment.....Read the entire article.
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