Tuesday, June 10, 2008

Crude Oil Falls

Crude oil fell more than $2 a barrel as the dollar climbed against the euro and yen, curbing the appeal of commodities.

Energy and metals dropped after Federal Reserve Chairman Ben S. Bernanke said economic risks have faded, spurring bets that interest rates will rise and bolstering the dollar. Investors looking to hedge against the dollar's drop have helped lead oil, gold, corn and gasoline to records this year.

Crude oil for July delivery fell $2.92, or 2.2 percent, to $131.43 a barrel at 1:28 p.m. on the New York Mercantile Exchange. Futures, which reached a record $139.12 a barrel on June 6, are more than double the level of a year ago.

Prices climbed $10.75 a barrel on June 6, the most ever, as the dollar weakened and amid threats of supply disruptions.

Brent crude oil for July settlement declined $2.60, or 1.9 percent, to $131.31 a barrel on London's ICE Futures Europe exchange. Prices climbed to a record $138.12 on June 6.

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