US crude falls $1/bbl on stronger US dollar, eurozone debt worries

07 June 2010 05:39  [Source: ICIS news]

SINGAPORE (ICIS news)--US crude futures slumped by more than $1/bbl on Monday, amid a strengthening US dollar and lingering worries over the eurozone debt crisis.

At 03:57 GMT, July NYMEX light sweet crude futures were trading at $70.09/bbl, down $1.42/bbl from the previous close. Earlier, the US benchmark tumbled by as much as $2 to $69.51/bbl, extending Friday’s drop of over $3/bbl.

Meanwhile, July Brent on the ICE futures exchange was trading at $71.19/bbl, down $0.90/bbl from the previous close.

The falls in crude futures tracked the decline of the euro, which had earlier fell to a four-year low as investors fled away from equities and commodities to the dollar.

The Dow Jones Industrial Average closed at 9,931 on Friday, down nearly 3.2%.

A strengthening of the US dollar against leading currency weakens the oil markets, as it makes dollar-denominated commodities, like oil, less attractive to overseas investors.

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By: Nurluqman Suratman

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