Biggest Fall in Oil Since 2004
After worries that growing tensions between Russia and the US over Georgia could degenerate into a war led to higher prices this week there has been a big reversal, a fall in the price of oil of 5.4%. Conversely, the dollar is up.
Crude oil prices fell more than 5.4 percent on Friday in the biggest one-day slide since 2004 as dealers turned their focus to rising supply levels and weakening global demand.
A rebound in the U.S. dollar encouraged the sell-off, applying downward pressure across the commodities markets by weakening the purchasing power of buyers using other currencies, dealers said.
The declines Friday were encouraged by two reports -- one showing an uptick in OPEC crude oil output and another showing an expected decline in U.S. travel over the September 1 Labor Day holiday weekend as high fuel prices hit consumers.