Oil near $90 as dollar gains amid Greek crisis
Monday, June 27, 2011
SINGAPORE (AP) — Oil prices fell to near $90 a barrel Monday in Asia as a stronger U.S. dollar made crude more expensive for investors with other currencies.
Benchmark oil for August delivery was down 74 cents to $90.42 a barrel at late afternoon Singapore time in electronic trading on the New York Mercantile Exchange. Crude rose 14 cents to settle at $91.16 on Friday.
In London, Brent crude for August delivery was down $1.97 to $103.15 a barrel on the ICE Futures exchange.
The euro fell to $1.4132 on Monday from $1.4188 late Friday as investors worried about Greece’s debt crisis. Greek lawmakers will vote Wednesday on a euro 28 billion ($39.8 billion) austerity plan, and German Finance Minister Wolfgang Schaeuble warned Sunday that Greece will not receive its next tranche of international aid unless the plan is approved.
Crude fell last week after the International Energy Agency said it will make 60 million barrels available over a 30-day period, half of which will come from the U.S. Strategic Petroleum Reserve. Some analysts said the price decline could be temporary.
“We doubt the world’s energy supply will be solved by such a paltry sum,” energy consultant The Schork Group said in a report. “This move might assuage the market this summer, but it is by no means a long-term fix.”
Traders will also be eyeing the latest data on U.S. personal income and spending scheduled to be released later Monday.
In other Nymex trading in July contracts, heating oil slid 2.3 cents to $2.73 a gallon while gasoline fell 2.7 cents at $2.74 a gallon. Natural gas futures dropped 3.9 cents at $4.19 per 1,000 cubic feet.
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