Oil hovers near $73 amid sliding stock markets
02/05/2010 | 01:27 PM
SINGAPORE — Oil prices hovered above $73 a barrel Friday in Asia after a major sell-off the previous day as investors dumped stocks and commodities amid doubts about the global economic recovery.
Benchmark crude for March delivery was up 25 cents at $73.39 a barrel at midday Singapore time in electronic trading on the New York Mercantile Exchange. The contract fell $3.84 to settle at $73.14 on Thursday, the biggest one-day drop in four months.
Global stock markets slumped amid concerns about high debt levels in Greece, Portugal and Spain and high unemployment in the US. Oil traders often look to stock markets as a measure of overall investor sentiment.
The Dow Jones industrial average slid 2.6 percent Thursday and all major Asian indexes were down in early trading. Japan's Nikkei 225 index slide 2.9 percent by midday.
Crude investors are also watching the dollar since they often buy commodities such as oil as a hedge against inflation and sell when the US currency strengthens.
The euro fell to $1.3706 on Friday from $1.3726 on Thursday while the dollar rose to 89.68 yen from 89.00 yen.
"The equities and energy markets heard reality calling," Michael Sander of Seattle-based Sander Capital Advisors said in a report. "With the dollar showing extreme strength and equity markets consolidating, I still think oil could trade down to $70.
In other Nymex trading in March contracts, heating oil was down 0.2 cent at $1.933 a gallon, and gasoline fell 0.4 cent to $1.947 a gallon. Natural gas rose 6.1 cents to $5.477 per 1,000 cubic feet.
In London, Brent crude was up 8 cents at $72.21 on the ICE futures exchange. - AP
Benchmark crude for March delivery was up 25 cents at $73.39 a barrel at midday Singapore time in electronic trading on the New York Mercantile Exchange. The contract fell $3.84 to settle at $73.14 on Thursday, the biggest one-day drop in four months.
Global stock markets slumped amid concerns about high debt levels in Greece, Portugal and Spain and high unemployment in the US. Oil traders often look to stock markets as a measure of overall investor sentiment.
The Dow Jones industrial average slid 2.6 percent Thursday and all major Asian indexes were down in early trading. Japan's Nikkei 225 index slide 2.9 percent by midday.
Crude investors are also watching the dollar since they often buy commodities such as oil as a hedge against inflation and sell when the US currency strengthens.
The euro fell to $1.3706 on Friday from $1.3726 on Thursday while the dollar rose to 89.68 yen from 89.00 yen.
"The equities and energy markets heard reality calling," Michael Sander of Seattle-based Sander Capital Advisors said in a report. "With the dollar showing extreme strength and equity markets consolidating, I still think oil could trade down to $70.
In other Nymex trading in March contracts, heating oil was down 0.2 cent at $1.933 a gallon, and gasoline fell 0.4 cent to $1.947 a gallon. Natural gas rose 6.1 cents to $5.477 per 1,000 cubic feet.
In London, Brent crude was up 8 cents at $72.21 on the ICE futures exchange. - AP
