Crude futures fall $1/bbl on stronger US dollar

28 September 2011 03:57  [Source: ICIS news]

SINGAPORE (ICIS)--Crude oil futures fell by more than $1/bbl in early trade on Wednesday in Asia on the back of a strengthening US dollar and an increase in US crude stockpiles.

At 01:56 GMT, November Brent crude on London’s ICE futures exchange was trading at $106.31/bbl, down by 83 cents from the previous close. Earlier, the North Sea benchmark fell to a session low of $106.06/bbl, down by $1.08/bbl.

November NYMEX light sweet crude futures (WTI) were at $83.20/bbl, down by $1.25/bbl from the previous close. Earlier, the contract price fell to a low of $83.00/bbl, down by $1.45/bbl.

A flight to safer investments because of uncertainty over the eurozone’s commitment towards a resolution to its debt crisis strengthened the US dollar.

A strong US dollar makes dollar-denominated commodities like oil less attractive to investors.

Meanwhile, US’ crude stockpiles rose by 568,000 barrels and its gasoline inventory up 4.6m barrels in the week ending 23 September, the American Petroleum Institute said on Tuesday. The data indicated softer energy demand in the world’s biggest oil-consuming nation.

($1 = €0.73)

By: Nurluqman Suratman

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