Oil Prices Fall Due to Strengthen Dollar, Stock Stacking

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Oil Prices Fall Due to Strengthen Dollar, Stock Stacking

Friday, 14 May 2010 10:06

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Oil Prices Fall Due to Strengthen Dollar, Stock Stacking
Harga Minyak Jatuh Akibat Penguatan Dolar, Penumpukan Stok ( bahasa )
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NEW YORK - Oil prices fell on Thursday, under pressure from the strengthening dollar and rising stocks in the United States, the world's largest energy consumer.
New York's main contract, light sweet crude for June delivery, fell 1.25 dollars to 74.40 dollars per barrel after falling as low as 73.62 dollars, its lowest level in three months.

Brent North Sea crude oil, London, for pengirinam June fell 1.09 dollars to 80.11 dollars.

The European single currency fall sharply against the dollar on Thursday, as traders seek "safe haven" (safe haven), the U.S. currency in the face of mounting debt and deficit concerns the euro zone.

Units of the euro zone sank as low as 1.2540 dollars - is not far from the 14-month low of 1.2529 dollars reached a week ago.

"A weak euro is still burdening prices," said analyst Andrey Kryuchenkov VTB Capital.

A strong greenback makes crude oil priced in dollars more expensive for buyers using weaker currencies.

European Union and the International Monetary Fund last week approved a rescue package of 750-billion (one trillion dollars) for Greek and other euro zone members with problems.

However, concerns about how the rescue package will be made, reducing the initial euphoria over the deal.

Another factor pushing oil prices down on Thursday is the increasing pile of U.S. energy showed weakening demand in the world's largest economy recover from recession.

U.S. Department of Energy Wednesday said crude stockpiles rose 1.9 million barrels last week - more than double analysts expected.

Stock in the main central terminal Cushing, Oklahoma, climbed to a record 37 million barrels from 36.2 million the previous week.

On Wednesday, the International Energy Agency (IEA) cut projections for global oil demand this year facing the pressure of public finance in Europe and elsewhere who can thwart the global recovery from the recession.

World oil demand is projected to reach 86.4 million barrels per day this year, up 1.9 percent from 2009 but the 220 000 barrels per day below the IEA forecast earlier.

"Stock of the bigger, the request did not return as expected," said Mike Fitzptarick, vice president of MF Global.

"At least that can be said is that sentiment has swung back toward skepticism feasible, sustainable recovery is underway," he said.

"In fact, looking back, sometimes in the future, can identify today as dawning awareness that the long deflationary spiral has begun." | Antaranews | tenderoffer.biz |

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