Oil falls to below $66 a barrel
Crude oil futures in New York fell below $66 a barrel, a 10 percent decline from this year’s high, marking a market “correction.’’
Crude oil is set for a third weekly drop after US unemployment rose to the highest in almost 26 years, signaling the world’s largest energy user remains mired in recession. Prices may drop again next week on speculation that US fuel inventories will climb as the weak economy curbs demand, according to a Bloomberg News survey of analysts.
Crude oil for August delivery fell $1.10, or 1.7 percent, to $65.63 a barrel on the New York Mercantile Exchange. Oil reached a year-to-date high of $73.38 on June 30.
The dollar posted a weekly gain against the euro, making oil less attractive as a hedge against a weakening US currency. The dollar traded at $1.3978 per euro from $1.4003 Thursday.
Oil trading in New York is curtailed by the Independence Day holiday.
June’s employment decline was more than forecast and followed a 322,000 decrease in May. Payrolls were estimated to fall 365,000 after a 345,000 decline initially reported for May, based on the median of 79 economists surveyed by Bloomberg News.
