NewsOil retreats below $86 amid tension in the marketsPreviousForecastAnalysisOil futures slumped below $86.00 in today's trading, under the effect of a stronger dollar and spreading woes around the debt crises in Europe, regardless of the fact that Greece finally acquired a 110 billion euros aid package to cut it's deficit.
The drop in oil prices preceded the EIA's report on oil reserves, which is expected to rise, reflecting the weak demand and consumption.
The greenback climbed to eight-month high against the yen, while it surged to the highest plank in a year against the euro, receiving support from rumors of an interest rate hike this year by the Federal Reserve.
Yesterday, oil had risen to $87.00 which is the highest since 18 months, while it is expected that high oil prices will stifle global economic recovery.
Oil futures due May opened at $85.50 yesterday, to record a high of $87.15 and a low of $85.50, before closing at $85.95 per barrel.
S&P GSCI added 3.09 points to 553.03, while RJ/CRB gained 0.39 points to 278.10.
Heating futures due May rose by $0.110 to $234.620 in NYMEX trading at 3:29am EST. Engine Fuel is trading at $242.540, down by $0.970, while natural gas futures lost $0.007 declining to $3.993 per 1000 cubic feet. London trading saw Brent futures due April fall $0.190 to $88.750.
Today, oil futures due May opened at $86.05, as they climbed to an $86.20 high and fell to a low of $85.70, while they are currently trading at $85.77.