Crude falls after OPEC countries leave output levels unchanged
Published May 31, 2013 12:27PM ET
Solid U.S. economic indicators failed to bolster the growth-sensitive commodity.
On the New York Mercantile Exchange, light sweet crude futures for delivery in July traded down 0.83% at USD92.83 a barrel on Friday, off from a session high of USD93.85 and up from an earlier session low of USD92.26.
The OPEC decision to leave output levels unchanged sparked a selloff, as many market participants view the global economy as already awash in crude oil.
Better-than-expected economic indicators out of the U.S. failed to curb losses, as the numbers sparked demand for the dollar.
A stronger greenback tends to make oil a less attractive commodity in dollar-denominated exchanges, especially in the eyes of investors holding other currencies.
The Thomson Reuters/University of Michigan's final consumer sentiment index rose to 84.5 in May from 83.7 in April.
Analysts were expecting the index to remain unchanged this month, which gave the dollar room to flex its muscles in global currency markets.
A separate report showed that the Chicago purchasing managers' index climbed to 58.7 this month from 49.0 in April, beating expectations for a rise to 50.0.
The numbers sparked demand for the dollar amid sentiments that the Federal Reserve may scale back stimulus measures such as its USD85 billion monthly bond-buying program, which weakens the U.S. currency to spur recovery.
Elsewhere on the ICE Futures Exchange, Brent oil futures for July delivery were down 1.05% at USD101.12 a barrel, up USD8.29 from its U.S. counterpart.
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Written By: Investing.com
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