Crude oil fell the most in six weeks as the dollar strengthened against the euro, curbing the appeal of commodities as an alternative investment. Oil dropped as much as 2.7 percent as speculation that Greece may fail to secure financial assistance from the European Union weakened the euro, which is heading for its biggest weekly decline against the dollar since January. Total U.S. fuel demand dropped the most since November in the week ended March 12, the Energy Department reported this week.
“The market looks like it’s tracking the dollar play,” said Gene McGillian, an analyst and broker at Tradition Energy in Stamford, Connecticut. “It’s also retreating from the $83 level because fuel demand dropped below the five year average.” Crude oil for April delivery fell $2.10, or 2.5 percent, to $80.19 a barrel at 11:11 a.m. on the New York Mercantile Exchange. Earlier, it touched $80.07, the biggest drop since Feb. 5. Futures are down 1.3 percent this week.
The dollar traded at $1.3511 against the euro, compared with $1.3608 yesterday. It’s poised to gain 1.9 percent this week, the biggest increase since the week ended Jan. 29. The Reuters/Jefferies CRB Index of 19 commodities declined 1 percent to 272.75, the steepest drop since March 4. Seventeen of the commodities traded lower. Total fuel demand dropped by 4.2 percent to 18.8 million barrels a day last week, 7.8 percent below the five year average for the second week in March. It was the biggest one-week decline since the week ended Nov. 6.....Your keyword.
How to Use Money Management Stops Effectively
Share
No comments:
Post a Comment