Oil Slips, Rally Cut Short By Dollar And Greek Worry
NEW YORK, June 11 (Reuters) - Crude oil prices fell on Thursday as players took profits from the past two days of gains, turning bearish after the dollar's rise against the euro on Greek debt worries weighed on demand for commodities.
A positive outlook for oil from the International Energy Agency (IEA) was offset by the dollar's first rally in five days against a basket of currencies. A stronger dollar makes commodities denominated in the greenback, including oil, costlier for other currency users.
The euro extended losses after International Monetary Fund spokesman Gerry Rice said "major differences" remained with Greece over an agreement to save the country from bankruptcy. IMF's technical team has returned from Brussels, where it had been in talks with Greek officials, although the IMF was still "fully engaged" with Athens, Rice said.
"Oil continues to slip and slide when it gets bad news out of Greece," said Phil Flynn, analyst at Chicago-based Price Futures Group.
Both U.S. and Brent crude futures fell more than $1 a barrel before paring losses on short-covering by those wary of a potential resurgence, analysts said.
The dollar's retreat from its highs also helped oil regain some footing.
"There's still some uncertainty about the market's near-term direction," said Sal Umek at the Energy Management Institute in New York.
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