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Oil prices rebounds

18 June 2009 08:52 (UTC +04:00)

Bakuâ€“ APA-Economics. Crude oil pared gains, trading near $71 a barrel in New York, as concern that demand is falling outweighed potential supply disruptions in Nigeria, Bloomberg reported.

Crude oil for July delivery was at $70.96 a barrel, down 7 cents, in electronic trading on the New York Mercantile Exchange at 1:06 p.m. Singapore time. The contract earlier rose as much as 55 cents, or 0.8 percent, to $71.58 a barrel. Prices are up 59 percent this year and reached $73.23 last week.

Oil has gained 55 percent since April 20 as the dollar index, a measure of the greenbackâ€™s value against six other currencies, had a 7.3 percent drop.

Investors tend to buy commodities as a hedge against inflation when the dollar declines. The U.S. currency was at $1.3951 per euro today from $1.3942.

Brent crude for August settlement was at $70.66 a barrel, down 19 cents, on Londonâ€™s ICE Futures Europe exchange at 1:04 p.m. Singapore time. The contract earlier traded as high as $71.31 a barrel.