Oil falls to $81 as traders eye equities, dollar
Wednesday, 24 November 2010
SINGAPORE, Nov 23 (AP): Oil prices fell to near $81 a barrel Tuesday in Asia as falling stock markets and a stronger US dollar weighed on crude.
Benchmark oil for January delivery was down 50 cents to $81.24 a barrel at late afternoon Singapore time in electronic trading on the New York Mercantile Exchange. The contract fell 24 cents to settle at $81.74 Monday.
Most Asian stock markets fell and the dollar gained Tuesday amid fears Ireland's debt crisis will spread to other financially weak European countries. Investors often look to stock markets as a gauge of overall investor sentiment while a stronger dollar makes crude more expensive for traders with other currencies.
Some analysts expect Chinese oil demand to jump to record highs by the end of the year despite recent measures to contain inflation. Improving crude demand in developed countries together with robust consumption in emerging economies should bolster prices, Goldman Sachs said.
Benchmark oil for January delivery was down 50 cents to $81.24 a barrel at late afternoon Singapore time in electronic trading on the New York Mercantile Exchange. The contract fell 24 cents to settle at $81.74 Monday.
Most Asian stock markets fell and the dollar gained Tuesday amid fears Ireland's debt crisis will spread to other financially weak European countries. Investors often look to stock markets as a gauge of overall investor sentiment while a stronger dollar makes crude more expensive for traders with other currencies.
Some analysts expect Chinese oil demand to jump to record highs by the end of the year despite recent measures to contain inflation. Improving crude demand in developed countries together with robust consumption in emerging economies should bolster prices, Goldman Sachs said.