NYMEX crude falls $1/bbl on currency gains

08 April 2008 14:52  [Source: ICIS news]

LONDON (ICIS news)--NYMEX light sweet crude futures fell by more than $1/bbl on Tuesday to take the front month May contract below $108/bbl on the back of a rebound in the US dollar and profit-taking after Monday’s rally.

 

By 13:00 GMT, May NYMEX crude had hit a low of $107.79/bbl, a loss of $1.30/bbl from Monday’s close of $109.09/bbl, before recovering to around $108.00/bbl.

 

At the same time, May Brent crude on London’s ICE Futures was trading around $106.10/bbl, having hit a low of $105.84/bbl, a loss of $1.30/bbl from the previous close.

 

The dollar gained against major currencies after falling on Friday when reports from the US showed a decline for non-farm payrolls in March.

 

The US Labor Department showed a net loss of 80,000 jobs in March, representing a decrease for the third consecutive month.

 

This latest set of negative data from the US has largely been ignored as the dollar and the stock markets have been gaining since the start of the week, with oil prices closing the day on Monday with almost $3/bbl gains.

 

The main factors which drove prices up on Monday were OPEC’s comments over the weekend suggesting that the organisation had no reasons to alter supply, fog on the Houston Ship Channel which was causing delays and gasoil prices hitting record highs.

By: Giovanni Coiro
+44 20 8652 3214

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