Oil prices fell today, over a firm dollar and weak economic data in key consumer nations, although central banks in the US, Europe and Japan have announced stimulus measures.
Front-month Brent futures dropped by 88 cents to $110.56 by 0634 GMT; last week it fell by 4.5%.
US crude futures fell 70 cents lower at $92.19 a barrel, while it fell back by 6.2% on demand worries as well as Saudi Arabia’s pledge to keep prices down.
The dollar index rose 0.3% as the euro was put under pressure, with increasing uncertainties in Spain and Greece, and other Asian currencies.
Dollar denominated commodities became more expensive for investors, which in turn led to a slump in buying.
Iran hinted of a pre-emptive strike on Israel which could affect oil markets, adding to supply worries with delays in North Sea shipments, reports Reuters.
Image: The dollar index rose 0.3% today. Photo courtesy of: Svilen.milev.