Yesterday saw Oil prices decreasing as the US dollar gained slightly in value. This was the first time in six sessions that oil showed a decline. U.S. crude due to be delivered in May fell by 29 cents from Monday where it had peaked at its highest price since the last quarter of 2008. The Ice Brent also fell yesterday by 26 cents a barrel.
The dollar rose in value against the Euro after it was announced that Greece was going to seek at least $5 billion dollars from US Investors in an effort to help meet its May debt commitments. Therefore an increase of just under 0.5% in the value of the dollar led to the purchase of dollar associated commodities becoming more costly for non-U.S. buyers.
Another factor which contributed to the stronger dollar was data released that showed the U.S. economy most notably their services sector grew by more than it has for four years during the first quarter of 2010. There was also an anticipated increase in future home sales during February which has also fueled hopes for the beginning of a significant growth period in the US economy.Andrew Reid, Staff Writer, Gulf Jobs Market News