|News||The dollar’s appreciation halts crude’s gains|
|Analysis||Crude future contracts have been trading this morning below $74 per barrel suppressed by the dollar's rise against major currencies. Investors are leaning towards selling commodities when the dollar rises, as a result of lower confidence levels in financial markets.|
The dollar continues to gain versus the euro, as the 16-nation currency continues to lose ground on the back of the record Greece deficit. The euro versus the dollar traded around 1.3895 this morning compared to last week’s 1.4400 levels.
Meanwhile, confidence levels in financial markets caused a notable drop in stock markers; the DJIA fell 1.1%, followed by Asian stocks that opened trading today low; thus reflecting onto crude contracts to trade around $73.50 per barrel.
Crude contracts fell 12% from the highest recorded since the beginning of the economic crisis around $84 per barrel, majorly affected by the rise of the dollar.
The S&P GSCI index ended trading yesterday at 490.05, down 2.21 points; whereas the RJ/CRB commodities index recorded losses by 1.18 points to close at 267.58.
As for other NYMEX trading as of 03:15 EST; future contracts for heating oil plunge to record $191.500 per gallon by $0.410, while motor gasoline is trading around $192.640 per gallon gaining $0.900, whereas natural gas contracts rose by $0.047 to record $5.185 per 1000 cubic feet. As for London, Brent contracts fell by $0.210 to record $71.92.
Crude oil contract for March delivery opened today at $73.80 per barrel, recording the highest at $74.00 and lowest at $73.30 per barrel, while presently trading around $73.70 per barrel.