Light oil price trading under $74 on a stronger US dollar

14 May 2010 14 May 2010

BonTrade

Light oil prices fell in trading Friday morning as a stronger US dollar hits commodity prices including oil. On Friday, Light crude oil futures for June delivery was trading down 58 cents to $73.82 a barrel by 7:25am on the NYMEX.

The euro steadied near 14 month lows against the dollar on Friday on concerns that rigorous fiscal tightening in Europe would dampen an already weak recovery.

The battered euro was at $1.2545, up 0.1 percent from levels seen in New York on Thursday. The single currency is on the way to ending a volatile week in negative territory against the dollar after a massive $1 trillion emergency rescue package reached on Monday boosted it to near $1.31.

Traders said euro buying has been coming in when the euro nears the $1.25 level in Asian trade, where players suspect some large option barriers are in place.