Crude continues tumble
US crude oil futures ended lower on Monday as profit-taking hit commodities
markets amid mounting concerns about a slowing economy and continued banking
and credit uncertainty.
Crude futures retreated only after reaching a record peak near $112, lifted
by the weak dollar.
Nymex April crude dropped $4.53, or 4.11%, to settle at $105.68 a barrel,
trading as low as $103.23 after reaching a record $111.80.
Reuters reported that the sharp losses in crude oil futures were seen as a
temporary set back by most technical analysts who viewed the move as a bull
market correction.
The dollar tumbled to a 12-1/2 year low against the Japanese yen on Monday
and record levels against the euro and the Swiss franc as emergency
liquidity-boosting measures by the Federal Reserve over the weekend failed
to ease worries about the US financial sector.
Meanwhile, US Vice President Dick Cheney said crude oil prices in excess of
$100 a barrel reflect the reality in the market place.
He told reporters on Monday there was limited excess oil production capacity
worldwide. Dollar weakness was also an element pushing prices to record
levels, he added.
"One of the problems we've got now obviously is that there is not a
lot of excess capacity worldwide," Cheney said at a news conference in
Baghdad with reporters travelling with him.
He said also there was a "much closer balance between supply and
demand, as well as the declining value of the dollar, you've got a situation
in which we've seen the price of oil rise fairly dramatically in recent
months ... but it reflects primarily the realities in the marketplace,"
Cheney said.
17 March 2008 03:37 GMT
| last updated:
17 March 2008 19:13 GMT
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