Oil prices take a break from record-setting ways
Saturday, 15 March 2008
SINGAPORE, Mar 14(AP): Oil prices retreated Friday from a record of US$111 a barrel hit in the previous session as investors fled the declining dollar in search of a haven in commodities.
Analysts attributed the decline as part of the volatility that has characterized crude futures trading in recent weeks.
"When there are no immediate supply side concerns that justify surging to new record everyday, some pullback is inevitable," said Victor Shum, an energy analyst with Purvin & Gertz in Singapore. "This is just part of the volatility of trading."
Light, sweet crude for April delivery dropped 37 cents to US$109.96 a barrel in Asian electronic trading on the New York Mercantile Exchange by midafternoon in Singapore.
Shum said the expiration of options on the April Nymex crude contract on Friday added to the volatility of trading.
The contract surged Thursday to an all-time trading high of US$111 before settling at a record close of US$110.33 a barrel, up 41 cents from the previous session.
Crude has risen to records in 12 of the last 13 trading sessions. Analysts blame oil's ascent on the weak dollar, which dropped to yet another low against the euro Thursday.
Analysts attributed the decline as part of the volatility that has characterized crude futures trading in recent weeks.
"When there are no immediate supply side concerns that justify surging to new record everyday, some pullback is inevitable," said Victor Shum, an energy analyst with Purvin & Gertz in Singapore. "This is just part of the volatility of trading."
Light, sweet crude for April delivery dropped 37 cents to US$109.96 a barrel in Asian electronic trading on the New York Mercantile Exchange by midafternoon in Singapore.
Shum said the expiration of options on the April Nymex crude contract on Friday added to the volatility of trading.
The contract surged Thursday to an all-time trading high of US$111 before settling at a record close of US$110.33 a barrel, up 41 cents from the previous session.
Crude has risen to records in 12 of the last 13 trading sessions. Analysts blame oil's ascent on the weak dollar, which dropped to yet another low against the euro Thursday.