Tuesday, Aug 12, 2008
Oil fell more than $1 a barrel on Tuesday as part of a broader commodities sell-off on the firmer U.S. dollar, which countered concerns over possible supply disruptions due to the Russia-Georgia clash.
Worries over slowing global demand also put prices under pressure, after world No. 2 consumer China posted a surprise drop in July crude imports.
U.S. crude fell 90 cents to $113.55 a barrel by 0632 GMT, hovering at its lowest since early May. The contract has fallen more than $30, or around 23 percent, from the record above $147 a barrel touched on July 11.
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London Brent crude slid $1.19 to $111.48.
“Oil prices have again sagged lower despite the potential threat that the Russia-Georgia conflict poses to oil supplies. The firm U.S. dollar is weighing on the oil price,” David Moore, an analyst at the Commonwealth Bank of Australia, said in a note.
The U.S. dollar rose to a six-month high against the euro as concerns over the global economy have kept other major currencies under pressure.
- A d v e r t i s e m e n t
Investors had bought oil and other commodities such as gold in earlier months as a hedge against inflation and a weak U.S. dollar, helping push oil prices to a record above $147 in July.
Crude oil had risen sevenfold at its peak last month, after climbing for six years on growing demand from China and other developing economies.