Oil prices resumed their declines yesterday, as the US dollar surged to a
six-month high against the euro and expectations of slowing global demand offset
supply concerns over a fire on key Turkish pipeline.
The US dollar enjoyed a powerful rebound against the euro, after the European
Central Bank and the Bank of England both left their benchmark interest rates
unchanged, which made traders found reasons to sell.
Moreover, the central banks' actions also boosted speculations that economies
around the world are slowing and will further dampen demand for oil.
Light, sweet crude for September delivery slipped 4.82 dollars to settle at
US$115.20 a barrel on the New York Mercantile Exchange and continued to dip
below US$115 a barrel in electronic trading after the close. Many traders regard
US$117 a barrel as a key support level for crude oil. They say a move below this
level suggests oil's recent slide is more than a brief pullback.
