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Oil prices decline on world markets

08 June 2009 07:58 (UTC +04:00)

Bakuâ€“ APA-Economics. Crude oil fell for a second day as the dollar traded near the strongest in a month against the yen, reducing the investment appeal of commodities, Bloomberg reported.
Oil declined as the U.S. currency gained the most versus the yen in more than three months on June 5. The relative strength index for crude rose to 68.81 last week from 51.12 at the end of April, indicating prices may be poised to fall.
Crude oil for July delivery fell as much as 66 cents, or 1 percent, to $67.78 a barrel on the New York Mercantile Exchange. It was at $67.95 at 12:50 p.m. in Singapore.
The contract dropped 0.5 percent to $68.44 a barrel on June 5 as the dollar gained after a stronger-than-forecast U.S. jobs report. Futures touched $70.32 earlier that session, a six-month high, after the Labor Departmentâ€™s May report showed the fewest job losses in eight months in the worldâ€™s largest oil-consuming nation.
Brent crude for July delivery declined as much as 57 cents, or 0.8 percent, to $67.77 a barrel on Londonâ€™s ICE Futures Europe exchange. The contract was trading at $67.85 at 12:53 p.m. in Singapore.
Oil also fell as output increased, adding to stockpiles. Daily production from the Kirkuk region of Iraq, OPECâ€™s third- largest producer, climbed 16 percent to 670,000 barrels on new wells and improved security, news agency Aswat al-Iraq reported yesterday.
New York oil futures have gained 38 percent the past two months and 52 percent so far this year as rising equity markets lifted investor confidence and the falling U.S. dollar boosted interest in oil, metals and other commodities.