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Oil prices drop on world markets

09 February 2010 08:26 (UTC +04:00)

Baku-APA-Economics. Crude oil was little changed below $72 a barrel in New York, paring earlier losses after the dollar fell on expectations that European central bankers will help Greece with its fiscal deficit, Bloomberg reports.
Oil reversed its losses as the dollar declined for the first time in five days on news that Central Bank President Jean-Claude Trichet will leave a meeting in Sydney early, raising optimism policy makers will assist Greece. A falling greenback spurs demand for commodities as a hedge against inflation concerns.
Crude for March delivery traded at $71.78 a barrel, down 11 cents, in electronic trading on the New York Mercantile Exchange at 2:27 p.m. Singapore time. Yesterday, it rose 70 cents to $71.89.
The euro traded at $1.3703 as of 2:06 p.m. in Singapore from $1.3649 in New York yesterday. It rallied from $1.3586 on Feb. 5, the lowest since May 20.
The U.S. Energy Department is scheduled to release a report on oil supplies at 10:30 a.m. Washington time tomorrow, and industry-funded American Petroleum Institute is set to release its report at 4:30 p.m. today. The announcements may be delayed because a weekend storm shut federal government offices, spokesmen for the groups said.
Distillate supplies declined 1.5 million barrels in the week ended Feb. 5 from 156.5 million the prior week, according to the median of 10 estimates by analysts.
Crude also fell after the Standard & Poorâ€™s 500 Index fell 0.9 percent to 1,056.74 in New York, its biggest Monday drop since October. The Dow slipped 103.84 points, or 1 percent, to 9,908.39. Almost four stocks retreated for each that rose on the New York Stock Exchange. All 10 major groups in the S&P 500 fell.

Oil gained 1 percent yesterday, rising for the first day in four, after the U.S. National Weather Service issued storm warnings from Utah to New Jersey and advisories for below-normal temperatures in the East. A weekend storm left almost 40 inches (102 centimeters) of snow in some places as well as shutting government offices in Washington.

Brent crude for March settlement fell 3 cents, or 0.04 percent, to $70.08 a barrel on the ICE Futures Europe exchange in London at 2:26 p.m. Singapore time. Yesterday it rose 52 cents, or 0.8 percent, to $70.11 a barrel.