Oil falls to near $99 amid stronger US dollar
Monday, May 23, 2011
SINGAPORE (AP) — Oil prices fell to near $99 a barrel Monday in Asia as a stronger U.S. dollar made commodities more expensive for investors with other currencies.
Benchmark crude for July delivery was down 97 cents to $99.13 a barrel at midday Singapore time in electronic trading on the New York Mercantile Exchange. The contract rose $1.17 to settle at $100.10 on Friday.
In London, Brent crude for July delivery was down 94 cents to $111.45 a barrel on the ICE Futures exchange.
The euro fell to $1.4084 on Monday from $1.4159 late Friday while the dollar rose to 81.97 yen from 81.90 yen.
Oil has dropped from a 30-month high near $115 a barrel on May 2 amid gains in the dollar and signs that U.S. gasoline demand is waning.
“With a resurgent dollar, weak macro-economic data, and high prices at the pump ... we don’t believe the sell-off is over,” energy consultant The Schork Group said in a report.
In other Nymex trading in June contracts, heating oil rose 2.5 cents to $2.89 a gallon and gasoline dropped 0.3 cents to $2.93 a gallon. Natural gas futures gained 0.1 cent to $4.23 per 1,000 cubic feet.