Oil slips below $116 on strong dollar

August 9th, 2008 - 5:33 am ICT by IANS  

New York, Aug 9 (Xinhua) Oil prices resumed their descent Friday, as the US dollar surged to a six-month high against the euro and expectations of slowing global demand offset supply concerns over a fire on key Turkish pipeline. The US dollar enjoyed a powerful rebound against the euro, after the European Central Bank and the Bank of England both left their benchmark interest rates unchanged, which made traders found reasons to sell.

The central banks’ actions boosted speculations that economies around the world are slowing and would further dampen demand for oil.

Light, sweet crude for September delivery slipped by $4.82 to settle at $115.20 a barrel on the New York Mercantile Exchange and continued to dip below $115 a barrel in electronic trading after the close.

Many traders regard $117 a barrel as a key support level for crude oil. They say a move below this level suggests oil’s recent slide is more than a brief pullback.

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