Oil falls as dollar strengthens on encouraging job data

10:57, December 05, 2009      

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Crude prices fell for the third consecutive day on Friday as the U.S. dollar surged on the unexpected drop of unemployment rate.

Light, sweet crude for January delivery dropped 99 cents, or 1.3 percent, to settle at 75.47 dollars a barrel on the New York Mercantile Exchange.

Oil jumped as much as 2 percent in the earlier session after data showed that the jobless rate declined to 10 percent in November, a surprise to most analysts.

However, pressure came afterwards as the dollar was boosted by the bullish job-loss numbers on speculations that an improving economy will allow the Federal Reserve to lift interest rates. The U.S. currency jumped the most in more than five months, pressuring oil prices to negative area, which showed how much influence the dollar could exert on oil trading.

In London, Brent Crude for January delivery fell 84 cents to settle at 77.52 dollars a barrel on the ICE Futures exchange.

Source:Xinhua
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