OIL prices fell yesterday as investors booked some profits after a seven-day surge. Prices were also pressured by concerns about global economic recovery and a stronger dollar.
Benchmark crude fell by US$1.21 to end the day at US$108.56 per barrel in New York. Brent crude, which is used to price oil that's imported by US refineries, lost US$1.30 to finish at US$124.17 per barrel in London.
Analysts say a standoff between the West and Iran over its nuclear program continues to keep oil prices around nine-month highs. But some traders sold contracts to lock in profits following a 9 percent rise since mid-February.
"Some people are getting out now just because oil is at those high levels," PFGBest analyst Phil Flynn said.
Western nations fear that Iran is building a nuclear weapon and have been trying to get international inspectors into its facilities. Iran denies the claim and has threatened to disrupt oil supplies in response to any threats.
The dollar rose against the euro after finance ministers from the world's 20 leading economies said that they would not add money to the International Monetary Fund until the European Union puts up more money to stave off its debt crisis.
The euro fell to US$1.3398 in afternoon trading yesterday from US$1.3459 late Friday. The euro rose to an 11-week high of US$1.3486 on Friday.
Meanwhile, gasoline prices continue to rise in the US The national average of US$3.70 a gallon (98 cents a liter) is the highest ever for this time of year. Drivers are paying an average of US$4.29 per gallon in California.
In some isolated cases around the US, gas is already going for more than US$5 a gallon (US$1.32 a liter).
The Oil Price Information Service said that pump prices should increase by another 5 to 10 cents in coming days to reflect price hikes last week in wholesale markets. The national average could hit US$4.25 a gallon (US$1.12 a liter) by late April, OPIS chief oil analyst Tom Kloza said.
In other energy trading, heating oil fell by 3 cents to finish at US$3.29 per gallon and gasoline futures lost 2 cents to end at US$3.13 per gallon. Natural gas futures fell by 10 cents to finish at US$2.45 per 1,000 cubic feet.
Source:shanghaidaily