Commodity Corner: Oil Loses on Volatile Equities, Stronger Dollar
Light sweet crude oil on Friday lost $1.44 to settle at $87.96 a barrel. The WTI traded within a range from $87.00 to $89.78.
Volatile equities markets, a stronger dollar, and lingering doubts about a resolution to the euro-zone debt crisis dampened the demand outlook for oil during Friday's session. The Dow Jones Industrial Average, S&P 500, and Nasdaq spent some time below the breakeven point Friday morning before posting modest gains by the closing bell.
The euro, meanwhile, lost 0.68 percent against the dollar. When the greenback strengthens against other major currencies, it becomes a less attractive value for some investors.
The November Brent contract price ended the day at $112.22 a barrel. It fluctuated from $111.61 to $114.10.
Thursday's release of a bearish report on inventories by the Energy Information Administration, coupled with predictions of warmer weather in the Midwest and East Coast, sent natural gas into negative territory. The October contract price fell seven cents to settle at $3.81 per thousand cubic feet.
Front-month natural gas peaked at $3.895 and bottomed out at $3.79 Friday.
Reformulated gasoline remained flat at $2.78 a gallon—also the intraday low. The October contract price topped off at $2.84 during the final session of the week.