Stronger Dollar, Weaker Demand Undercuts Crude
Oil prices ended lower, giving up an earlier advance as the dollar held its gains against the euro and the Energy Department slashed its oil consumption projections. Retail gasoline prices rose to a new record over $4.04 a gallon.
Light, sweet crude for July delivery fell $3.04 to settle at $131.31 a barrel on the New York Mercantile Exchange.
The dollar rose on recent supportive comments by U.S. officials, prompting selling by investors who had bought commodities such as oil as a hedge against inflation. Also, a stronger dollar makes oil more expensive to investors overseas.
In other Nymex trading, July gasoline futures fell 7.47 cents to settle at $3.3193 a gallon, and July heating oil futures fell 6.46 cents to settle at $3.8124 a gallon.
