Strong dollar drops oil prices

LONDON (AFP) - World oil prices fell further on Friday as a strong US currency dented investor enthusiasm for dollar-priced crude, analysts said. New Yorks main contract, light sweet crude for April delivery fell 59 cents to 81.61 dollars a barrel. Londons Brent North Sea crude for May delivery was down 65 cents to 80.83 dollars. Today, it seems to be a quiet day in economic figures and investors focus might switch to the US dollar movements and global equity markets for further signs of the global economic conditions, said Sucden analyst Myrto Sokou. The European single currency tumbled on Thursday and Friday as investors sought the safe-haven US currency amid uncertainty about international assistance for debt-plagued Greece. The euro dived as low as 1.3533 dollars on Friday, down from 1.3603 dollars in late New York on Thursday. A stronger greenback makes dollar-denominated crude more expensive for buyers using weaker currencies and tends to dampen oil demand and prices. Crude prices fell this week as traders tracked the dollar and Greek debt concerns, and shrugged off a widely-expected decision from the 12-nation OPEC oil cartel to maintain output levels. Anxiety over the fate of Greek finances deepened as the European Union groped for common ground on how to ensure that Greece will be able to borrow money on financial markets at rates similar to those paid by its partners. Clearly dissatisfied with what they see as a tepid EU response thus far, Greek authorities have made it clear they are prepared to go to the IMF for help. Oil prices were getting their cue from the broader market as persistent concerns over Greece saw another down day for the euro (on Thursday) with the commodity complex suffering as well, said VTB Capitals Andrey Kryuchenkov. Otherwise, little changed in the world of oil with market participants still digesting the bullish weekly report on US fuel inventories report and OPECs decision to keep production levels unchanged on Wednesday. OPEC left its output ceiling unchanged at 24.84 million barrels a day at a meeting in Vienna, citing uncertainty in the macroeconomic environment and global oil demand. The cartel, which pumps 40 percent of world oil, said it would review the economic situation at its next meeting on October 14. Meanwhile on Wednesday, the US Department of Energy said stockpiles of distillates, including diesel and heating fuel, fell more than expected, by 1.5 million barrels, in the week ending March 12. Gasoline or petrol inventories sank by 1.7m barrels, widely topping forecasts. In addition, fears that Beijing will take more steps to cool the booming Chinese economy also hit sentiment this week, because China is the second biggest global oil consuming nation after the US.

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