Crude futures tumble to $69.71 a barrel
22 Sep 2009
Crude oil futures settled lower yesterday amid firm dollar, ahead of a Federal Reserve interest rate decision due Wednesday and the G20 meet in Pittsburgh on Thursday.
New York's main contract, light sweet crude for October delivery, dropped to $69.71 a barrel, a decline of $2.33 from the Friday closing level, and as high as $72.51 last week.
In London, Brent North Sea crude for November delivery fell $2.63 to settle at $68.69 a barrel.
Due to a prolonged slide in the dollar, oil becomes relatively inexpensive for holders of other currencies. However, a stronger dollar makes oil more expensive for holders of weaker currencies and tends to dampen demand.
The Fed's two-day meeting which begins today is expected to hold its key rate at zero to 0.25 per cent as the US economy shows early signs of emerging from a long recession.
Light, sweet crude for October delivery traded $2.33, or 3.2 per cent, lower at $69.71 a barrel on the New York Mercantile Exchange.
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