Tech & Biz

Oil Prices tumble below $143

by Sanjay Jha | July 7, 2008 at 11:06 pm

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After continuously increasing for many weeks now fuel prices for the first time prices have fallen down. Stronger dollar is also helping in reducing the crude price. dollar has appreciated against major currencies.

Oil prices fell on Monday after a long US holiday weekend as traders eyed the stronger dollar and easing tensions over key crude producer Iran.

Brent North Sea oil for August delivery slid USD 1.50 to USD 142.92 a barrel in electronic deals. However it remained close to the record high 146.69 that was struck last Thursday.

New York's main oil contract, light sweet crude for August delivery, dived USD 2.82 to USD 142.47 today. The contract had punched a life-time high of 145.85 on July 3.

American investors were set to play catch-up with their counterparts in London on Monday, dealers said.

US floor trading was shut last Friday but electronic trade continued amid the Independence Day holiday.

"Oil futures were lower, with New York catching up with Brent as traders in America were coming back to work after a long holiday weekend," said Sucden analyst Andrey Kryuchenkov.

"The greenback was stronger (on Monday), extending gains from the end of last week and helping to put more pressure on oil prices," he added.

The strengthening US currency dampens demand for dollar- priced crude which becomes more expensive for buyers using weaker currencies.

The dollar rallied against major currencies on Monday after US President George W. Bush, speaking over the weekend ahead of a Group of Eight (G8) summit in Japan, said his administration backed a "strong" dollar.

Oil blazed a record-breaking trail last week, driven by geopolitical tensions over Iran, a weaker US dollar and tightening global supplies, traders said.