Commodity Daily News

Crude Oil prices look primed to fall as USD strengthens

Oil prices dropped under US$120 a barrel today in Asia as a strengthening dollar and worries about economic growth offset supply concerns and a stronger USD.
The US dollar has strengthened significantly against the EUR and the JPY after the European Central Bank and the Bank of England both left their benchmark Interest Rates unchanged under conflicting pressure from higher inflation and mounting concern about economic growth. As a result, Crude for September delivery fell 42 cents to US$119.60 a barrel in electronic trading on the New York Mercantile Exchange by midday in Singapore.
Overall, the Crude prices climbed to record highs above $147 a barrel earlier the previous month, but have since fallen more than $29 as reports have indicated that record high prices of Light Sweet and gas have been motivating consumers to lower their demand.