By John M. Biers
NEW YORK--Crude prices retreated Friday from a multiday rally on
profit-taking, a stronger dollar and revived concerns about the
euro zone.
Front-month Nymex crude futures for August settled at $91.44,
down $1.22, or 1.3%. The August WTI contract expired Friday.
September WTI crude futures settled at $91.83, down $1.14 for the
day. Front-month Brent oil futures settled at $106.83, down 97
cents.
The retreat follows seven straight sessions of higher crude
prices, a rally built on geopolitical concerns about Iran and
increased speculation of another round of central-bank quantitative
easing.
Several analysts attributed Friday's decline to profit-taking
after WTI futures jumped 10.43% over the seven-day stretch.
"Today was really more about some profit-taking," said Andrew
Lebow, senior vice president of energy derivatives for Jefferies
Bache LLC.
"This morning's selloff appears heavily related to
profit-taking, and a resumption of this month's strong advance
would appear likely early next week on any fresh headlines out of
the Middle East," Jim Ritterbusch, president of the oil-trading
advisory firm Ritterbusch & Associates, said in a note.
Also weighing on prices Friday was a stronger U.S. dollar, which
discourages crude purchases by making the commodity more expensive
to consumers who use other currencies. The dollar was up about 1%
compared with the euro, and the U.S. dollar index was up about 0.7%
Friday.
"The dollar is stronger today, and that's pushing down crude,"
said Jason Schenker, president of Prestige Economics, a commodity
market and research-consulting firm.
Matt Smith, an analyst at Summit Energy, said the market's
mentality has returned to one of "risk aversion" following reports
that Spanish bond yields soared anew.
"We're seeing the euro get hammered, and it's just a flight from
risk," Mr. Smith said.
Front-month reformulated gasoline blendstock, or RBOB, settled
at $2.943 a gallon, up 0.41 cent. Front-month heating oil settled
down 2.27 cents at $2.924 a gallon.
More information on settlements and highs and lows for futures
on Nymex and ICE platforms can be found by searching for the
following headlines:
Nymex Light Crude Oil Close
Nymex Harbor RBOB Gasoline Close
Nymex Heating Oil Close
ICE Brent Crude Oil Close
ICE Gas Oil Close
Write to John M. Biers at john.biers@dowjones.com
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