Miles Johnson writes:
Commodities prices dipped on Monday as a strengthening US dollar dimmed the appeal oil and gold as alternative investments.
Dollar strength, caused in part by better-than-expected US employment data last week, has put pressure on crude, gold and other dollar-denominated commodities as it increases their relative price for investors operating in other currencies.
In the energy market, the US benchmark Nymex July West Texas Intermediate crude oil fell $1.01 to $67.43 a barrel – down 4.5 per cent from Friday’s seven-month high of $70.32. ICE July Brent, the European benchmark, shed 99 cents to $67.35.
“Given the failure of WTI to confirm a break of $70 a barrel, some consolidation is likely,” said Olivier Jakob, of Petromatrix, the Swiss-based oil consultancy.