Commodity Daily News

Oil Falls on Firmer U.S Dollar

Crude Oil prices fell as the U.S Dollar climbed against the EUR, limiting investor appetite for assets to hedge against inflation. A rising Dollar usually reduces the attraction of raw materials such as oil. Crude Oil fell to the lowest in 5 weeks, to $64.93 a barrel on a stronger USD and speculation U.S. fuel inventories will increase as the recession curbs demand in the world's biggest energy-consuming country.

The Organization of the Petroleum Exporting Countries (OPEC) has said prices needed to be around $75 to spur investment and it has lowered its output targets by 4.2 million barrels per day since last September to try to support the market. The Oil minister of Kuwait, the 6th biggest producer of the OPEC producers, said yesterday that he wants to see oil prices stay above $60 a barrel and will watch the market closely before deciding on its output at OPEC's meeting in September.