“LONDON (Reuters) – Oil fell sharply on Friday with U.S. light crude tumbling more than $2 toward $96 per barrel as the dollar rose and investors worried about the outlook for global growth and about the health of the euro zone.
The euro fell against the dollar as wariness about disagreements on how to tackle Greece’s debt and ahead of a Spanish regional elections caused investors to cut back bullish euro bets before the weekend.
The dollar, which often moves inversely to commodities because oil and other raw materials are priced in the U.S. currency, rose around 0.6 percent against a basket of currencies.
U.S. light crude oil futures for June, which were due to expire later on Friday, were trading around $96.40 per barrel, down $2.04 by 1400 GMT, after hitting an intra-day high of $99.60.
Brent crude for July dropped $2.12 to $109.30.
“The dollar is stronger against the euro — largely on concerns about the Spanish elections with fears local municipalities will be forced to reveal how much debt they have,” said Edward Meir, senior commodities analyst at brokers MF Global in Connecticut.
“Overall, the downtrend remains very much intact in oil.” ”
If you enjoy the content at iBankCoin, please follow us on Twitter
