Markets: Prices dip as dollar strengthens

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.

Read the full commodities report

Energy Source is no longer updated but it remains open as an archive.

Insight into the financial, economic and policy aspects of energy and the environment.

Read our farewell note

About the blog

Archive

« May Jul »June 2009
M T W T F S S
1234567
891011121314
15161718192021
22232425262728
2930