Oil Falls Below $93 Amid Stronger U.S. Dollar
Oil prices tumbled to below $93 a barrel Friday in Asia amid a stronger dollar and mixed signs about the U.S. economy.
Benchmark oil for July delivery was down $2.36 to $92.59 a barrel at late afternoon Singapore time in electronic trading on the New York Mercantile Exchange. The contract rose 14 cents to settle at $94.95 on Thursday.
In London, Brent crude for August delivery was down $2.19 to $111.83 a barrel on the ICE Futures exchange.
On Thursday, a survey by the Federal Reserve Bank of Philadelphia found that manufacturing slowed in that region, one day after a similar report found that manufacturing was weakening in the New York area.
"Negative economic numbers could place more downward pressures on petroleum pricing," Ritterbusch and Associates said. "We expect bearish rather than bullish surprises out of the economic releases."
A stronger dollar made commodities such as oil more expensive for investors with other currencies, and helped push down crude. The euro fell to $1.4164 on Friday from $1.4216 late Thursday.
Other U.S. economic news was more positive. The pace of new home construction quickened last month and the number of people who applied for unemployment benefits fell last week to 414,000, more of an improvement than economists expected.
Investors will be eyeing the latest U.S. consumer sentiment data later Friday.
Some analysts expect global crude supplies, deprived since February of Libya's 1.6 million barrels per day of oil output, could struggle to meet growing demand from developing countries.
"If we've seen the bottom of the industrial slowdown, then tighter crude and product markets could return rapidly," J.P. Morgan said in a report. "Risks of a price spike and increased volatility in the third quarter are arguably increased by the most recent price dip."
Crude has fallen from $102 late last week and almost $115 in early May.
In other Nymex trading in July contracts, heating oil fell 5 cents to $2.95 a gallon while gasoline dropped 14 cents at $2.92 a gallon. Natural gas futures slid 1 cent at $4.40 per 1,000 cubic feet.
Source: Agence France Presse
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