Crude oil down as dollar strengthens

19 November 2009

Crude oil prices moved lower for the first time in four days during electronic trading on the New York Mercantile Exchange (Nymex) this morning (November 19th).

The dip, which was also seen in heating oil contracts trading on the exchange, came as the dollar strengthened against the euro, making commodities less attractive to foreign investors.

Yesterday, the headline crude oil contract edged marginally higher and settled just below $80 (£48) a barrel, while heating oil prices finished nearly a cent lower around the $2.04 a gallon mark.

The losses in heating oil came as a front of unseasonably warm weather persisted in the north-east, suggesting low demand for the fuel.

"Temperatures are unseasonably mild in the United States and crude is holding the range between the high $70s and low $80s," said Peter McGuire, managing director of CWA Global Markets, speaking to Reuters.

He added that demand is unlikely to pick up unless the weather becomes much colder over the coming days.

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