Commodity Corner: Oil Down on Stronger Dollar
A stronger dollar contributed to lower November crude oil futures Monday.
Oil settled at $82.21 a barrel, a 45-cent drop from Friday, as the euro declined 0.8% during Monday's trading. Because oil is priced in dollars, a stronger dollar makes the commodity more expensive—and thus less attractive to investors. Oil peaked at $83.50 and bottomed out at $82.01.
Crude oil might have lost more ground had gasoline not rallied for the second consecutive trading day. Gasoline, which settled two cents higher to end the day at $2.17 a gallon, has benefited from a recent prediction by the U.S. Department of Agriculture that this year's corn harvest will bring smaller yield. Consequently, prices for the corn-based gasoline additive ethanol are expected to rise. Gasoline for November delivery traded within a range from $2.14 to $2.17.
November natural gas continued to follow a downward course Monday, settling a nickel lower at $3.60 per thousand cubic feet. The front-month natural gas price fluctuated between $3.59 and $3.67.