Oil prices slump four dollars as greenback rises
Sunday, 10 August 2008
NEW YORK, Aug 9 (AFP): Crude oil prices plunged more than four dollars a barrel Friday as the dollar rose to a five-month high against the euro amid growing recession fears in the eurozone.
New York's main contract, light sweet crude for September, skidded a hefty 4.82 dollars to close at 115.20 dollars a barrel.
Over the week the futures contract has lost nearly 10 dollars a barrel.
In total the New York contract has shed more than 32 dollars a barrel since hitting a record-high 147.27 dollars on July 11.
In London, Brent North Sea crude for September delivery fell 4.53 dollars to settle at 113.33 dollars a barrel.
Oil prices Thursday had climbed modestly, snapping a three-day losing streak, but resumed their downward spiral Friday as Italy became the first member of the 15-nation eurozone to announce its economy had contracted in the second quarter.
"Bad news in Europe is good news for the dollar and bearish for commodities," said Phil Flynn, analyst at Alaron Trading.
The euro slid below 1.50 dollars for the first time in more than five months.
A strong dollar makes goods priced in the US unit more expensive for holders of weaker currencies.
The dollar also has fresh support from the fading prospects of an interest rate increase by the European Central Bank, dealers said.
New York's main contract, light sweet crude for September, skidded a hefty 4.82 dollars to close at 115.20 dollars a barrel.
Over the week the futures contract has lost nearly 10 dollars a barrel.
In total the New York contract has shed more than 32 dollars a barrel since hitting a record-high 147.27 dollars on July 11.
In London, Brent North Sea crude for September delivery fell 4.53 dollars to settle at 113.33 dollars a barrel.
Oil prices Thursday had climbed modestly, snapping a three-day losing streak, but resumed their downward spiral Friday as Italy became the first member of the 15-nation eurozone to announce its economy had contracted in the second quarter.
"Bad news in Europe is good news for the dollar and bearish for commodities," said Phil Flynn, analyst at Alaron Trading.
The euro slid below 1.50 dollars for the first time in more than five months.
A strong dollar makes goods priced in the US unit more expensive for holders of weaker currencies.
The dollar also has fresh support from the fading prospects of an interest rate increase by the European Central Bank, dealers said.