Oil fell for the first time in three days as a stronger dollar trimmed demand for commodities as an alternative investment and a report showed U.S. crude stockpiles increased. Oil fell as much as 1.5 percent as the dollar gained against the euro amid concern Greece will fail to secure financial assistance from the European Union. Crude oil inventories grew last week to the highest level since August, according to a U.S. government report yesterday.
“The strong dollar has been the major factor here,” said Peter Beutel, president of trading adviser Cameron Hanover Inc. in New Canaan, Connecticut. “The dollar strength has got the risk takers or the risk buyers on the sidelines, but they’re only going to wait so long before getting back into the water.” Crude oil for April delivery fell 49 cents, or 0.6 percent, to $82.44 a barrel at 1:35 p.m. on the New York Mercantile Exchange. It settled at $82.93 yesterday, the highest close since Jan. 6. Oil has risen 71 percent in the past year.
The dollar gained 0.8 percent against the euro to $1.3629 from $1.3738 yesterday. Greek Prime Minister George Papandreou set a one week deadline for the EU to craft a financial aid mechanism. Greece needs to raise about 10 billion euros ($14 billion) to refinance bonds due on April 20 and May 19. The Reuters/Jefferies CRB Index of 19 commodities declined 0.4 percent to 275.30, the first drop in three days. Ten of the commodities traded lower.....Read the entire article.
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