MW: Oil turns lower as equities falter, dollar strengthens
Gasoline hovers around lowest price since February
By Claudia Assis, MarketWatch
SAN FRANCISCO (MarketWatch) -- Crude-oil futures turned lower Monday as U.S. equities faltered and the dollar strengthened.
Crude oil for October delivery retreated 20 cents, or 0.2%, to $73.64 a barrel on the New York Mercantile Exchange. Oil had opened higher, tracking stocks as optimism about merger activity pushed equities up and fueled hopes for higher oil demand.
Oil has tracked stocks in recent months, as the stock market performs as a barometer for improved sentiment about economic conditions.
The dollar strengthened as the Monday session progressed, putting extra pressure on oil futures.
The dollar index (DXY 83.20, +0.14, +0.17%) , which compares the U.S. unit to a basket of six currencies, rose 0.2% to 83.19, after losing steam earlier on. Read more about Currencies.
A rising dollar usually hurts commodities as it makes them more expensive for holders of other currencies, diminishing their investment appeal.
On Friday, crude-oil futures declined to their lowest level since mid-July, taking cues from a global equities selloff as worries deepened about the worldwide recovery and the dollar rose.
Oil lost 2.6% last week, on the heels of a nearly 7% decline in the previous week. It has closed lower for eight of the past nine sessions.
Other energy products remained lower. Reformulated gasoline for September delivery, the front-month contract expiring next week, lost 2 cents, or 1%, to $1.91 a gallon, the lowest price since early February.
Natural gas for September delivery, also the front-month expiring contract, declined 1 cent, or 0.3%, to $4.11 per million British thermal units. A close around these levels would be the lowest since May 25.
