By Sarah Turner, MarketWatch
MADRID (MarketWatch) — Crude-oil futures fell in electronic trading on Wednesday, as investors reacted to news that Greece will head back to the polls by pushing up the U.S. dollar.
Crude for June delivery CLM2 -1.55% extended losses of more than $1 in Asia to drop $1.77 to $92.24 a barrel as European stock markets fell sharply. The front-month futures contract reached a fresh settlement low for the year of $93.98 a barrel on Tuesday.
The losses were made in tandem with a rising U.S. dollar, as investors looked for safer places to park their money against the backdrop of European turmoil. Gold futures also fell sharply.
The ICE dollar index DXY +0.10% , which measures the greenback against a basket of six currencies, traded at 81.515 on Wednesday. That’s a jump from 81.286 in late trading on Tuesday, when it notched its 12th straight session of gains to reach a January high.
The dollar hasn’t gained for such a long stretch since at least 1985.
Meanwhile, U.S. supply data released late Tuesday from the American Petroleum Institute showed that crude-oil supplies rose by 6.6 million barrels in the week ended May 11.
The API data come ahead of the more closely watched U.S. Energy Information Administration report due Wednesday morning. Analysts polled by Platts expect to see a 1.5 million-barrel climb in crude-oil stocks.
June heating-oil HOM2 -0.62% traded down 2 cents at $2.92 a gallon and gasoline RBM2 -0.69% for June delivery lost 1 cent to $2.93 a gallon.
Natural gas for June NGM12 +0.32% delivery was flat at $2.50 per million British thermal units.
Sarah Turner is MarketWatch's bureau chief in Sydney.
