Friday, December 18, 2009
LONDON: Oil fell to around $72 a barrel on Thursday as the dollar rose to a more than three-month high against the euro, outweighing a surprise drop in US distillate stocks ahead of an expected cold snap.
The US Federal Reserve on Wednesday left interest rates unchanged as expected but its optimistic comments on the economy fuelled a dollar rebound. Oil prices tend to fall when the dollar rises because it makes it more expensive for buyers holding other currencies. “The big story is the dollar/euro figure which has pulled down other commodities with it,” said oil trader Rob Montefuscoof Sucden Financial, adding that bearish sentiment was tempered by forecasts for cold weather in the eastern United States.
US crude for January delivery fell 39 cents to $72.27 a barrel by 1502 GMT after falling more than $1 earlier. ICE Brent futures shed 86 cents to $73.43 a barrel. Analysts scoured data out of the world’s top fuel consumer the United States for clues about the pace of economic recovery but signals were mixed.
US jobless claims rose unexpectedly last week while November leading indicators rose 0.9 per cent.
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