Crude oil traded below $76 Friday, poised for a weekly decline on concern that the pace of fuel demand recovery in the U.S., the biggest energy- consuming nation, may stall. Prices fell as the U.S dollar strengthened against the EUR after Dubai's attempt to reschedule debt spurred investors to seek the safety of assets perceived as lower risk. A stronger Dollar reduces the investment appeal of commodities.
According to analysts there seems to be anxiety across the markets, commodities and equities, stemming from concerns over Dubai's possible default on debt. The markets are weighing what the implications of Dubai's debt will be on the global economic recovery, they said.
Crude has remained locked in a tight range for most of this month with gains capped by weak fundamentals and a generally weak U.S. dollar curbing losses. Over the past 28 trading days oil has been bounded between $74.50 a barrel and $78 a barrel, and could spend most of the remaining days of this year within a somewhat broader $75-$82-a-barrel range.