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Oil has fallen more than 6 percent this week

05 September 2008 10:53 (UTC +04:00)

Baku. Vugar Mustafayev - APA-Economics. Crude oil fell in New York, set for its biggest weekly decline in a month, as the dollar gained, curbing demand for commodities as a currency hedge.
Oil has fallen more than 7 percent this week as the euro dropped to the weakest this year against the dollar. U.S. daily average implied fuel demand so far this year is down 4.1 percent at 19.9 million barrels from a year ago, U.S. Energy Department data showed yesterday, Bloomberg reports.
Crude oil for October delivery fell as much as $1.06, or 1 percent, to $106.83 a barrel, and traded at $106.90 at 8:59 a.m. London time on the New York Mercantile Exchange.
London Brent crude steadied at $106.30 a barrel, having lost $1.76.
Prices are down 27 percent from the record $147.27 reached July 11. The dollarâ€™s decline earlier this year had prompted investors to buy commodities, helping to push crude oil, gold, corn and gasoline to records.
The euro was at $1.4286 against the U.S. dollar at 8:50 a.m. London time from $1.4498 yesterday. It touched $1.432, the lowest since Dec. 21. The European currency has dropped for six straight days.
The Organization of Petroleum Exporting Countries, the supplier of 40 percent of the worldâ€™s oil, will probably keep producing at a record pace. The 13-nation group will reject calls from Venezuela and Iran to trim supplies at its Sept. 9 meeting in Vienna, according to 29 of the 32 energy analysts surveyed by Bloomberg News.