Nov. 27 (Bloomberg) -- Crude oil fell to the lowest levelin six weeks as Dubai’s attempt to reschedule its debt bolsteredthe dollar and prompted investors to sell commodities.
Oil dropped as much as 7.1 percent as the U.S. currencyclimbed, dulling the appeal of raw materials as an alternativeinvestment, and equities tumbled. Dubai World, the governmentinvestment company burdened by $59 billion of liabilities,sought to delay repayments, raising concern that worseningdefaults may hold back the global recovery. “The situation in Dubai revives worries about the recoveryof the economy,” said Adam Sieminski , chief energy economist atDeutsche Bank AG in Washington. “The strength of the recoveryhas an obvious and immediate impact on both oil demand andprices.” Crude oil for January delivery declined $3.24, or 4.2percent, to $74.72 a barrel at 10:03 a.m. on the New YorkMercantile Exchange. Futures touched $72.39, the lowest sinceOct. 12. On a closing basis the market is heading for thebiggest drop since Sept. 24.
Full Story: Crude Oil Futures Tumble to Six-Week Low on Dubai Debt Crisis - Bloomberg
Oil dropped as much as 7.1 percent as the U.S. currencyclimbed, dulling the appeal of raw materials as an alternativeinvestment, and equities tumbled. Dubai World, the governmentinvestment company burdened by $59 billion of liabilities,sought to delay repayments, raising concern that worseningdefaults may hold back the global recovery. “The situation in Dubai revives worries about the recoveryof the economy,” said Adam Sieminski , chief energy economist atDeutsche Bank AG in Washington. “The strength of the recoveryhas an obvious and immediate impact on both oil demand andprices.” Crude oil for January delivery declined $3.24, or 4.2percent, to $74.72 a barrel at 10:03 a.m. on the New YorkMercantile Exchange. Futures touched $72.39, the lowest sinceOct. 12. On a closing basis the market is heading for thebiggest drop since Sept. 24.
Full Story: Crude Oil Futures Tumble to Six-Week Low on Dubai Debt Crisis - Bloomberg
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