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Commodity Daily News
Crude Declined as the Dollar Appreciated
Tuesday, 22 Jun 2010
Crude Oil declined as excitement about China's plan to allow the Yuan to appreciate against the USD and as equities fell on renewed concerns that Europe's sovereign-debt crisis will affect economic recovery.
China is the world's largest Oil consumer outside the U.S; while the decision to loosen the exchange rate is expected to increase the country's Oil demand, the transition will likely be gradual and therefore the increase in demand will be more modest than initially expected.
Crude for July delivery dropped as much as 63 cents, or 0.8%, to $77.19 a barrel in electronic trading on the New York Mercantile Exchange yesterday. Currently Oil prices are back to trading near the $78.00 a barrel level.
