Crude Tumbles More Than USD6 on Stronger Dollar, Pipeline Restart
Crude oil fell more than USD6 a barrel Friday, dropping the most in percentage terms since December 2004, as the U.S. dollar strengthened and BP Plc restored shipments on a Caspian Sea pipeline through Turkey.
Energy futures fell as the rising dollar eased demand for commodities as an inflation hedge. The Baku-Tbilisi-Ceyhan pipeline, which moves oil from Azerbaijan through Georgia to Turkey's Mediterranean coast, resumed normal flows Friday after a fire shut it earlier this month, a Turkish official said.
Crude oil for October delivery fell $6.59, or 5.4 percent, to settle at $114.59 a barrel on the New York Mercantile Exchange, the biggest drop on a percentage basis since Dec. 27, 2004. In dollar terms, it was the biggest decline since Jan. 17, 1991, when Allied forces expelled Iraq from Kuwait.
Energy futures fell as the rising dollar eased demand for commodities as an inflation hedge. The Baku-Tbilisi-Ceyhan pipeline, which moves oil from Azerbaijan through Georgia to Turkey's Mediterranean coast, resumed normal flows Friday after a fire shut it earlier this month, a Turkish official said.
Crude oil for October delivery fell $6.59, or 5.4 percent, to settle at $114.59 a barrel on the New York Mercantile Exchange, the biggest drop on a percentage basis since Dec. 27, 2004. In dollar terms, it was the biggest decline since Jan. 17, 1991, when Allied forces expelled Iraq from Kuwait.
