Oil falls below 89 dollars per barrel
Oil prices fell
further from 27-month high on Wednesday as a stronger dollar sapped
investor’s risk appetite for commodities, despite signs of tighter oil
supply fundamentals.
Oil staged a sharp
rally in late December, helping to make the commodity the top
performing asset class in 2010, but prices had since retreated as
investors opted to take profits.
U.S. crude futures
for February fell to an intra-day low of 88.16 dollars a barrel and the
lowest since December 20, 2010 while ICE Brent for February fell 71
cents to 92.82 dollars a barrel.
The U.S. dollar index rose by nearly 0.5 per cent on Wednesday, making oil more expensive for non-dollar buyers.
Losses on Wednesday
came despite data that previously showed a much larger-than-expected
7.5 million barrel drop in crude inventories in the final weeks of 2010.
Leave a Reply