Oil traded near a five-week low on a stronger dollar and concern that slow fuel consumption will lead to a rise in stockpiles, Bloomberg has reported.
Crude oil for August 2009 delivery was traded at $64.19 a barrel, up $0.14, at 10.20am Singapore time on the New York Mercantile Exchange. The contract dropped $2.68, or 4%, to $64.05 on 6 July 2009, the lowest settlement since 27 May.
In New York oil traded at less than $65 a barrel as the dollar advanced against the euro, lowering the appeal of commodities. US gasoline inventories are expected to have risen one million barrels last week from 211.2 million, indicating that consumption during the country’s peak driving season remained lacklustre, a Bloomberg News survey showed.
A rising dollar decreases the attraction of raw materials such as oil and gold to investors. The dollar was at $1.3967 a euro at 10.20am in Singapore, from $1.3984 on 6 July 2009.