London (Reuters) - oil fell sharply Friday with light crude tumbling more than U.S. $2 to $96 per barrel while the dollar rose and investors worried on the prospects for global growth and the health of the euro area.
The euro fell against the dollar as distrust on disagreements on how to address the debt of the Greece and advance a Spanish regional elections has caused investors to cut euro bullish Paris before the end of week.
The dollar, which often moves inversely because oil products and other materials are priced in the currency of the United States, about increased 0.6% against a basket of currencies.
U.S. light crude oil future for June, were owed due later Friday, traded approximately $96.40 per barrel, down $2.04 by 1400 GMT, after having hit an intra-day high of $99.60.
Brent crude for July fell $2.12 109.30 to $.
"The dollar is stronger against the euro, largely on concerns about the Spanish elections with fears of the local municipalities will be forced to reveal how much they have, of the debt", said Edward Meir, analyst of superior products broker MF Global in Connecticut.
"Overall, the downward trend remains very intact in oil".
Energy watchdog of the West, the International Energy Agency (IEA), Thursday urged OPEC to increase oil production to protect the global economy and seemed to suggest that its members could release of emergency stocks if OPEC did not.
But analysts say that the Organization of the petroleum exporting countries is extremely unlikely to increase yields.
OPEC
National commodities Economist Australia Bank Ben Westmore, said OPEC is unlikely to change its output targets at its meeting in Vienna June 8.
"The relative abundance of crude oil stocks in the international market would be justification enough for (OPEC) to leave production quotas unchanged", he said. "Altogether, no change in OPEC's production quotas does appear to be the most likely outcome of future discussions."
The Governments of the United States to China worried oil prices soaring this year may derail the global recovery emerging as fresh high accelerate inflation, reduce the ability of consumers to spend, resulting in a slowdown in demand.
Governor of the Central Bank of the country, Zhou Xiaochuan, said Friday that the Government seeks to strike a balance between inflation control and support growth.
Oil prices have emerged this year in part because of concerns that unrest will spread of the Libya and the Syria in other countries that are exporters of oil, just at the moment where the demand emerging as China and the India continues to increase.
"... The risk premium should persist until in 2011 with a resolution ordered short term of the conflict in Libya difficult to envisage,"Wetmore said.""
Investors are waiting for the data of the New York-based economic Cycle Research Institute (ECRI), which was due to publish its weekly index, a measure of the future growth of U.S., at 1430 GMT.
(Additional reporting by Manash Goswami to Singapore; editing by Jason Neely)
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