Front-month oil contract slips below $108; dollar up modestly
By Steve Gelsi, MarketWatch
NEW YORK (MarketWatch) — Crude-oil futures fell on Friday after the latest U.S. economic data on inflation pointed to rising fuel costs as a component of a jump in consumer prices.
Light, sweet crude for May delivery (CLK11 107.79, -0.32, -0.30%) dropped 63 cents to $107.48 a barrel.
U.S. consumer prices rose 0.5% in March, with higher gasoline and food costs accounting for three-quarters of the increase, according to Labor Department data. The figure matched the increase estimated in a survey of analysts by MarketWatch.
Also on the economic front, the Empire State manufacturing survey rose in April for the fifth consecutive month, with general business conditions registering a surprising increase to 21.7, the best level in a year, from 17.5 in March.
Energy traders also kept an eye on moves in the dollar, which managed a recovery after a key gauge (DXY 74.90, +0.22, +0.29%) tracking moves in the greenback against a basket of global currencies touched its lowest since December 2009 late Thursday. Read more on the dollar.
On Thursday, crude futures gained $1, or 0.9%, to $108.11 a barrel on the New York Mercantile Exchange — the highest settlement since Monday. Prices had started floor trading in the red but recovered as the dollar trended lower.
