NEW YORK (CNNMoney.com) -- Oil prices tumbled a 3-month low near $115 a barrel Friday as the dollar rallied strongly against slumping foreign currencies and concerns about a Turkish supply disruption were eased.
Light, sweet crude for September delivery settled down $4.82 to $115.20 on the New York Mercantile Exchange. It was the lowest close since May 1, when oil finished at $112.52.
Crude reversed course after settling higher Thursday, as the dollar hit a 5-month high against the euro.
The 15-nation euro bought $1.5017, down 2% from Thursday's levels. The British pound fell 1.4% to a 17-month low of $1.9164, and the dollar rose 0.8% against the Japanese currency to ¥110.275.
Oil is traded in dollars, and investors had been using it and other commodities to hedge against inflation. But as the dollar began to rebound, investors shifted their money to other investments such as stocks and bonds.
Please watch the price fall quickly. It is over-valued.
No comments:
Post a Comment