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Crude oil drops on dollar rise

18 November 2009 08:15 (UTC +04:00)

Baku â€“ APA-Economics. Crude oil declined as the dollar rose, curbing demand for commodities, and before a report expected to show stockpiles rose in the U.S, Bloomberg reported.

Oil prices eased today as traders sold futures to lock in yesterdayâ€™s 3.3 percent gain. U.S. crude stockpiles probably rose last week, according to a survey before the U.S. Department of Energyâ€™s weekly report tomorrow.
Crude oil for December delivery fell as much as 76 cents, or 1 percent, to $78.14 a barrel in electronic trading on the New York Mercantile Exchange and traded at $78.53 a barrel at 1:02 p.m. London time. Crude closed up 3.3 percent yesterday to settle at $78.90 a barrel, the biggest gain since Sept. 30.
The dollar strengthened to $1.4883 against the euro, from yesterdayâ€™s close of $1.4970.
OPEC will meet on Dec. 22 in Luanda, Angola, to discuss output targets after agreeing to leave them unchanged at the past three meetings.

Brent crude oil for January settlement fell as much as 74 cents, or 0.9 percent, to $78.02 a barrel, on the London-based ICE Futures Europe exchange. It was at $78.40 a barrel at 1:01 p.m. London time. The contract closed up 3.2 percent yesterday.

A Bloomberg survey of analysts showed stockpiles of crude grew by 1.2 million barrels in the week ended Nov. 13 from 337.7 million the prior week.
U.S. demand for diesel may increase in coming weeks as farmers return to harvest crops as weather conditions improve, Goldman Sachs Group Inc. said in a report dated yesterday.