Continuing evidence of weak energy demand and worries over economic stability within the Euro Zone and even the future of the euro itself, has pushed oil below $80 a barrel for the first time in six weeks. Investors are also turning back to the dollar as a safe haven which makes oil even more expensive for investors holding other currencies which must be converted to USD.
“The dollar is up as risk appetite has been dampened and prices are adjusting to more realistic levels as earlier this week prices were not backed up by fundamentals,” said Carsten Fritsch, oil analyst at Commerzbank in Frankfurt.
“More proof of weak demand came yesterday with U.S. data showing crude and products stocks rose.”
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