dollar

Oil prices declined today due to a firm dollar and worries about demand from the world’s top two oil consumers, the US and China.

Brent crude plunged by 96 cents at $99.95 a barrel, while US oil fell by 80 cents to $92 a barrel, reported Reuters.

The European benchmark dropped around five percent last week, which is its biggest weekly fall since early April, due to Federal Reserve Chairman Ben Bernanke’s statement about cutting monetary stimulus.

Oil prices also came under pressure after the dollar hit a two-week high against a basket of major currencies, mainly due to the Federal Reserve policy plan.

In China, manufacturing activity contracted to a nine-month low in June, sparking apprehensions that the country could miss its growth target of 7.5% for 2013.

The International Energy Agency (IEA), in the beginning of June, has reduced its 2013 oil demand growth prediction for China to 3.8% from 3.9%.


Image: Oil and other commodities were impacted, after the dollar hit a two-week high against other major currencies. Photo courtesy of freedigitalphotos.

Energy