Crude futures fall $1/bbl on strong US dollar, eurozone woes

23 July 2012 04:40  [Source: ICIS news]

SINGAPORE (ICIS)--Crude futures fell by more than $1/bbl on Monday morning on the back of a strong US dollar, as the euro is being battered on concerns about the eurozone debt crisis.

At 11:06 Singapore time (04:06 GMT), US crude for September delivery was trading at $90.50/bbl, down by $1.33/bbl from Friday’s close, while Brent crude was down $1.32/bbl at $105.51/bbl.

A strong US dollar makes dollar-denominated commodities like crude more expensive for investors.

“[The] eurozone crisis has become the focus again,” DBS Bank said in a research note.

ValenciaSpain’s third largest city – is expected to seek fiscal bailout of some €18bn ($21.7bn).

“Trimming the budget won’t be easy [for Spain],” DBS Bank said, adding that the country’s dilemma would be to allow the government deficit to grow to rescue Valencia or reject the request and “[economic] growth suffers further”.

Asia’s equities markets are also being hounded by eurozone concerns, with the Japan’s benchmark stock market index – Nikkei 225 – falling 127.22 points or 1.47% at 8,542.65.

($1 = €0.83)

By: Pearl Bantillo
+65 6780 4359

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