Crude Oil Falls as Stronger Dollar Curbs Appeal of Commodities - Bloomberg

March 27 (Bloomberg) -- Crude oil in New York fell the mostin two weeks as the dollar’s gain against the euro reduced theappeal of commodities to investors and stock markets declined.

Information about auto components India

Oil dropped as much as 5 percent after the U.S. currencyrebounded against the euro on evidence the recession isdeepening in Europe. A stronger dollar makes commodities lessattractive as an alternative investment. Falling commodityprices and a report showing the U.K. economy contracted morethan previously estimated sent stocks lower. “This correction is long overdue,” said Tom Bentz , asenior energy analyst at BNP Paribas Commodity Futures Inc. inNew York. “We were up pretty much all week on the rising stockmarket and weak dollar. The fundamentals don’t support that kindof a move.” Crude oil for May delivery fell $1.99, or 3.7 percent, to$52.35 a barrel at the 2:30 p.m. close of floor trading on theNew York Mercantile Exchange. The contract is up 0.5 percentthis week. Prices are up 17 percent this year.

Full Story: Crude Oil Falls as Stronger Dollar Curbs Appeal of Commodities - Bloomberg