Economy- Firmer dollar weighs on crude-oil prices – MarketWatch

Posted: November 9, 2012 in Uncategorized

November 9, 2012

Benchmark U.S. crude for December delivery CLZ2 +0.22% fell 51 cents, or 0.6%, to $84.59 a barrel.

The drop came after oil futures recovered some ground Thursday, after settling almost 5% lower the prior day weighed by a bigger-than-expected increase in last week’s U.S. stockpiles. Read: Oil futures regain $85 level after heavy drop.

Mayor Michael Bloomberg announces an odd-even license-plate system for gasoline and diesel purchases as a government effort to reduce long wait times at the pumps. The gas rationing rule goes into effect Friday.

A stronger dollar kept oil prices under pressure on Friday, as the ICE dollar index DXY +0.27% rose to 80.963 from 80.807 in late North American trade Thursday. See: Dollar buoyed amid fiscal cliff worries, Greece

Dollar-denominated commodities tend to drop on a stronger greenback, as they get more expensive to holders of other currencies.

“It is unlikely that prices will fall much from their current level again, as this is precluded by the numerous risks to supply,” analysts at Commerzbank said in a note.

“In addition to the ongoing problems with North Sea production, we are now also seeing delays to shipments in Nigeria and Azerbaijan,” they said.

Oil prices were further subdued by concerns that euro-group finance ministers won’t make a decision on Greece’s next bailout money when they meet on Monday. News reports suggested the ministers will delay the call until after the troika of Greece’s international lenders finishes its report on the country’s progress in meeting its bailout conditions.

European stock markets dropped with the benchmark Stoxx Europe 600 index XX:SXXP -0.17% down 0.7% to 268.65. See: Euro-zone concerns weigh on Europe stocks

U.S. stock futures pointed to a lower open on Wall Street. See: Stock futures slip; focus on Obama, fiscal cliff

Among other energy products, heating-oil for December delivery HOZ2 +0.30% fell 0.1% to $2.95 a gallon, and gasoline for delivery in the same month RBZ2 +1.12% rose 0.1% to $2.61 a gallon.

December natural-gas futures NGZ12 -1.94% traded down 0.9% at $3.57 per million British thermal units.

http://www.marketwatch.com/story/oil-adds-to-data-fueled-gains-2012-11-08?link=MW_latest_news

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