Euro slumped Oil prices drop below U.S. $ 70/Barel

Tokyo - the euro single currency continues to stress to the lowest level in four years. It was directly triggered the decline in world crude oil prices to below U.S. $ 70 per barrel.

In trading Monday (5/17/2010) in Asian markets, the euro fell to 1.2234 dollars, which is the lowest point since April 2006. The next Euro at 1.2277 dollar recovered slightly, or weaker than the closure last weekend at 1.2358 dollars.

The fall of the euro continue to occur despite the European Union and the IMF has announced a rescue package from the impact of the crisis region of Greece worth U.S. $ 1 trillion.

"This is not just a problem of the debt crisis that caused the euro slumped Greece, but also fears of widespread impact," said Hideaki Inoue, a senior analyst with Mitsubishi UFJ Trust and Banking, as quoted from the AFP on Monday (5/17/2010).

Deterioration of the euro was directly triggered the drop in world crude oil prices. In trading in Asia, the main contract light sweet crude June delivery had slipped to U.S. $ 69.82 per barrel, before finally improved to U.S. $ 70.05 per barrel. While the Brent oil fell 1.38 dollars to the level of U.S. $ 76.55 per barrel.

"One of the factors that put pressure on oil prices is the continued strengthening of the U.S. dollar over the euro. Fundamentally, the oil market is not particularly tight, so they are vulnerable to reversal of sentiment, and this is what actually happened," said David Moore, analyst at Commonwealth Bank of Australia.

So far oil prices already down 17 dollars or about 20%, after touching its highest point in the level of U.S. $ 87.15 per barrel on 3 May. (Qom / dnl)