Oil prices dip in profit taking
Sunday, 20 September 2009
NEW YORK, Sept 19 (AFP): Oil prices slipped yesterday under pressure from a slightly stronger dollar and profit taking from recent gains.
New York's main contract, light sweet crude for October, dipped 43 cents to close at 72.07 dollars a barrel.
In London, Brent North Sea crude for November delivery dropped 23 cents to settle at 71.32 dollars.
"Oil prices have surrendered some recent gains with the US dollar finding some footing," said Mike Fitzpatrick of MF Global,
The New York futures contract remained above 72 dollars, at the higher end of the narrow trading range of the past three weeks.
The dollar's small appreciation weighed on dollar-priced oil, making it more expensive for buyers using weaker currencies.
However, the dollar's overall weakening trend-it has sunk to a near-year low against the euro-has been price-supportive of oil and other commodities.
Oil futures closed mainly flat Thursday despite positive US economic data as markets appeared to take a breather from recent gains driven by hopes of recovery from global recession.
After having closed slightly above 69 dollars a barrel a week ago, the New York contract hit 72.51 dollars Wednesday, thanks to weekly official data showing a large decrease in US crude reserves.
New York's main contract, light sweet crude for October, dipped 43 cents to close at 72.07 dollars a barrel.
In London, Brent North Sea crude for November delivery dropped 23 cents to settle at 71.32 dollars.
"Oil prices have surrendered some recent gains with the US dollar finding some footing," said Mike Fitzpatrick of MF Global,
The New York futures contract remained above 72 dollars, at the higher end of the narrow trading range of the past three weeks.
The dollar's small appreciation weighed on dollar-priced oil, making it more expensive for buyers using weaker currencies.
However, the dollar's overall weakening trend-it has sunk to a near-year low against the euro-has been price-supportive of oil and other commodities.
Oil futures closed mainly flat Thursday despite positive US economic data as markets appeared to take a breather from recent gains driven by hopes of recovery from global recession.
After having closed slightly above 69 dollars a barrel a week ago, the New York contract hit 72.51 dollars Wednesday, thanks to weekly official data showing a large decrease in US crude reserves.