NYMEX Light oil prices trading lower on US recovery concerns

Light crude oil futures for November delivery dropped as much as 72 cents, or 1 percent, trading lower at $70.10 a barrel in electronic trading on the NYMEX, and was at $70.18 at 1:26 p.m. Singapore time on Friday. On Thursday, the light oil futures rose 21 cents to settle at $70.82. Light oil prices are set to rise 6.4 percent this week.

Prices also fell as the dollar rose to a three-week high against the euro. The U.S. currency climbed to as high as $1.4512 per euro, the strongest since Sept. 10, from $1.4545 in New York yesterday. A stronger dollar limits investors’ need for commodities and assets to hedge against inflation.

Oil fell in New York, paring this week’s gain, on signs the U.S. economy is still in the midst of a recession, limiting fuel demand in the world’s biggest crude consumer. “The fundamental picture is not that great,” said Clarence Chu, a trader with options dealers Hudson Capital Energy in Singapore. “The numbers don’t show that we’re on the way up yet so demand will be lagging.”

“Commodities overall took a hit from that negative turn in macro sentiment, combined with the advancing dollar,” said Toby Hassall, a research analyst at CWA Global Markets Pty in Sydney. “Going forward, the market is going to be looking at the employment numbers tonight.”

Tags:  light oil prices, NYMEX, recovery, US