Crude oil falls nearly two per cent

16 June 2009

Oil continued to retreat from eight-month highs on Monday as prices fell for the third successive day on the back of a recovering US dollar.

The US currency rose to its strongest point against the euro in almost a month, making oil more expensive for foreign buyers and putting increased pressure on crude prices.

This came after oil's recent gains had already been brought to a halt at the end of last week following signs that a potential economic recovery may not be as close as first thought.

US crude for July delivery fell nearly two per cent, or $1.42 (£0.87), to close at $70.62 a barrel on Monday, having last week reached eight-month highs of more than $73 a barrel. London Brent crude also settled down $1.48 at $69.44 a barrel.

The dip in the market could come as good news for home heating oil customers, who have seen prices surge in recent months on hopes that the worst of the recession could be over.

Iraqi oil minister Hussain al-Shahristani told Reuters this week that a speedy economic recovery could push values up further before the year is out.

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