SF: Crude Oil Declines From Four-Week High as Dollar Strengthens
June 11 (Bloomberg) -- Crude oil fell from a four-week high as a stronger U.S. currency undermined the appeal of dollar- priced assets used to counter inflation.
Crude, set for a 5 percent gain this week, may rise next week amid signs that the global economy and oil demand are recovering, a Bloomberg News survey showed. U.S. crude inventories have declined for the past two weeks as refiners boost operating rates to meet summer demand for driving fuels, according to the Energy Department.
"The strengthening U.S. dollar has been a problem for the crude market," said Eliane Tanner, a Credit Suisse AG analyst in Zurich. "Nevertheless, we think fundamentals are well-placed for a gradual recovery, with strengthening demand in the U.S. that should cause the market to tighten later in the year."
Crude oil for July delivery fell as much as 71 cents, or 0.9 percent, to $74.77 a barrel in electronic trading on the New York Mercantile Exchange, and traded for $74.81 as of 9:13 a.m. London time. Brent crude oil for July delivery was down 47 cents at $74.82 on the London-based ICE Futures Europe exchange.
Yesterday, prices in New York increased $1.10, or 1.5 percent, to $75.48, the highest settlement since May 12. The dollar advanced to $1.2100 against the euro from $1.2148.
