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Oil trading lower amid Greece debt concerns, stronger dollar
Published on March 19, 2010 by oilprices · No CommentsOil prices fell slightly in trading on Friday, extending the previous day’s losses, as the US dollar strengthened against the euro amid worries over Greece’s debt concerns.
US Light crude oil futures for April delivery were at $81.88 a barrel by 0255 GMT on the NYMEX, while in London, Brent crude oil futures were trading at $81.16 on the ICE Futures Exchange.
The US dollar’s safe haven status grew after Greece said it could not achieve the promised deficit cuts if its borrowing costs remained high, raising the stakes in its quest for the European Union to help tackle its debt crisis, and putting the European single currency under pressure.
“The strengthening US dollar still remains a challenging issue which put further pressure on the energy market and prompts investors to some profit-taking,” said analyst Myrto Sokou at the Sucden brokerage in London.
A stronger greenback makes dollar denominated crude oil futures more expensive for buyers using weaker currencies, including the euro, hence the US dollar therefore tends to stimulate oil demand and in turn, oil prices.
Tags: debt, dollar, euro, Greece, oil prices, oil trading