Tuesday, May 3, 2011

Oil below $113 as traders eye dollar, bin Laden (AP)

Oil prices fell below $113 a containerful Tuesday as a stronger U.S. note prefabricated vulgar more pricey for investors with another currencies and markets appraised the effect of Osama containerful Laden's death.

By early salutation in Europe, benchmark vulgar for June conveying was downbound 81 cents at $112.71 a containerful in electronic trading on the New royalty Mercantile Exchange. The contract fell 41 cents to resolve at $113.52 on Monday.

In London, Brent vulgar for June conveying was downbound 99 cents to $124.13 a containerful on the ICE Futures exchange.

Crude has jumped 34 proportionality since mid-February, a rally fueled by flutter of lubricator supplies in Libya and a weaker dollar. On life when the note strengthens, commodities such as lubricator run to fall.

The euro fell to $1.4791 on Tuesday from $1.4823 late Monday.

Traders are also mulling the effect of the modification of Osama containerful Laden in Pakistan on Sunday. Some are concerned about revenge attacks on U.S. targets while others judge a weaker al-Qaida lowers the risk that coercion will destabilize the oil-rich Middle East.

Edward solon of MF Global in New royalty said Bin Laden's modification doesn't really alter any of the key drivers that hit been pushed energy prices higher over the time some months, such as the continued tensions in the Middle East, the stalemate in Libya and the anaemic dollar.

Some analysts consider containerful Laden's modification a secondary supply for the lubricator market, and are more convergent on U.S. monetary policy. Federal Reserve Chairman Ben Bernanke said last hebdomad that the U.S. would keep welfare rates low for an extended period, comments that helped weaken the dollar.

"In a number of respects, Ben Bernanke is such more central to the future of lubricator prices than Osama containerful Laden," Cameron Hanover said in a report. "We hit seen the effect a weaker U.S. note has had on lubricator prices."

In another Nymex trading in June contracts, vaporisation lubricator fell 1.55 cents to $3.2366 a gallon and gasoline dropped 0.1 coin to $3.3469 a gallon. Natural pedal futures were downbound 1.4 cents at $4.679 per 1,000 cubic feet.

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Alex Kennedy in island contributed to this report.


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