praveen
09-04-2008, 08:14 AM
Oil prices eased on Tuesday, pressured by profit-taking, gains in the dollar and expectations that a looming government report would show another increase in US crude stockpiles.
US crude futures fell by 44 cents to $108.65 a barrel by 2:30 EDT (1830 GMT), the day after refinery trouble in Europe spurred a $3 jump. London Brent crude shed 62 cents to $106.52 a barrel.
"Looks like dollar strength helping pressure crude. The crude market failed to take out earlier highs and is running into some profit-taking," said Tom Bentz of BNP Paribas Commodity Futures Inc.
The dollar rose against a basket of currencies on growing views the economic slump in the United States could spill over into other countries and prompt their central banks to cut interest rates.
A weak dollar tends to raise prices for commodities denominated in the currency by boosting non-US spending power and by attracting investors seeking an inflation hedge. A stronger dollar can push commodities prices down.
Economic turmoil also has tempered crude's record rally in recent months by dimming prospects for global energy demand growth, analysts said.
US crude futures fell by 44 cents to $108.65 a barrel by 2:30 EDT (1830 GMT), the day after refinery trouble in Europe spurred a $3 jump. London Brent crude shed 62 cents to $106.52 a barrel.
"Looks like dollar strength helping pressure crude. The crude market failed to take out earlier highs and is running into some profit-taking," said Tom Bentz of BNP Paribas Commodity Futures Inc.
The dollar rose against a basket of currencies on growing views the economic slump in the United States could spill over into other countries and prompt their central banks to cut interest rates.
A weak dollar tends to raise prices for commodities denominated in the currency by boosting non-US spending power and by attracting investors seeking an inflation hedge. A stronger dollar can push commodities prices down.
Economic turmoil also has tempered crude's record rally in recent months by dimming prospects for global energy demand growth, analysts said.