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Oil prices back at $70 range after 20 percent May losses
Published on May 22, 2010 by oilprices · No CommentsCrude oil prices have ended this week’s trading around the $70 mark and have seen about a 20 percent loss since hitting an 18 month market high of $87.15 on May 3rd 2010.
US Light crude oil futures settled at $70.04 on the NYMEX, while in London, Brent crude oil futures closed at $71.68 on the ICE Futures Exchange. Continued weakness in the oil market below $70 a barrel could send crude oil prices tumbling further.
On Thursday, the last day of trading for the June contract, WTI oil prices swung up and down by as much as 10 percent before settling 2 percent lower.
“The market tried to stabilise but started slipping again at the end of the day. Nothing changed, the trend is still down, until proven otherwise,” said analyst Tom Bentz at BNP Paribas.
The market also tumbled as the euro slumped to a new four year low against the US dollar on Wednesday as investors were shocked by Germany’s unilateral move to impose restrictions on what it termed highly speculative trading practices.
A stronger US unit makes dollar priced crude oil more expensive for buyers using weaker currencies, denting demand, which leads to lower oil prices.