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Commodity Daily News
Crude Oil Falls 3%
Wednesday, 17 Nov 2010
Oil slumped 3% on Tuesday to a 2-week low as the dollar rose on euro zone debt concerns and as fears that China's attempts to cool inflation will reduce demand. China's move sparked a broad commodities sell off yesterday.
A stronger U.S. dollar can pressure oil, and other dollar-denominated commodities, by attracting investors to foreign exchange markets seeking higher yields, increasing the value of greenbacks paid to producers and making commodities more expensive for users of other currencies.
Oil has retreated after hitting a 25-month peak above $88 a barrel last Thursday, the highest prices since the financial crisis.
