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Oil prices go down on speculations

29 June 2009 07:36 (UTC +04:00)

Bakuâ€“ APA-Economics. Crude oil fell for a second day on speculation demand for fuel may be limited as the global economy makes a slow recovery and as the dollar gained against most major currencies, Bloomberg reported.

A report today in the U.S., the worldâ€™s largest oil consumer, may show manufacturing in Texas marked two years of contraction this month. The dollar rose against the euro for the first time in three days, presenting a disincentive for traders to buy dollar-denominated commodities.

Crude oil for August delivery dropped as much as 80 cents, or 1.2 percent, to $68.36 a barrel and traded at $68.97 in after-hours electronic trading on the New York Mercantile Exchange at 12:09 p.m. in Singapore.

The contract fell $1.07, or 1.5 percent, to $69.16 a barrel on June 26 after a report showed savings in the U.S. jumped to a 15-year high in May, signaling a slow recovery in household spending. The August contract declined 1.2 percent last week, having reached a seven-month high of $73.90 on June 11.

The dollar rose to $1.4029 per euro from $1.4056 in New York on June 26. Against the Japanese currency, the greenback climbed to 95.46 yen from 95.18 yen.

Brent crude oil for August settlement fell 37 cents, or 0.5 percent, to $68.55 a barrel on Londonâ€™s ICE Futures Europe exchange at 12 p.m. in Singapore. It declined 1.2 percent on June 26.