Business

Oil prices fall on stronger dollar and supply boost

  • 2 November 2012
  • From the section Business

Oil prices have fallen after the dollar strengthened and the US government allowed foreign tankers to deliver additional supplies in the wake of super storm Sandy.

Brent crude fell $2.44 to $105.73 a barrel. US light crude lost $2.23 to $84.86, its lowest since July.

The dollar strengthened against the pound and the euro after better-than-expected jobs figures.

A stronger dollar makes oil more expensive to overseas buyers.

Figures released earlier on Friday showed the US economy added 171,000 new jobs in October, which was much more than had been expected.

'Storm damage'

Output from East Coast refineries has been hit by Sandy, forcing the government to waive restrictions, enshrined in the Jones Act, on foreign ships delivering oil from US ports.

"The administration's highest priority is ensuring the health and safety of those impacted by Hurricane Sandy, and this waiver will remove a potential obstacle to bringing additional fuel to the storm-damaged region," said Homeland Security Secretary Janet Napolitano.

Oil analyst Gene McGillian at Tradition Energy said: "I think economic uncertainty and next week's elections are weighing on oil prices.

"You also have the statement that the Jones Act is going to be waived for a week, suggesting some supplies are going to return."

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