NEW YORK, Mar 20 (APP): Crude oil fell below $100 a barrel Thursday for the first time in two weeks on growing concerns that an economic slowdown in the United States, a major oil consumer, would undermine global energy demand.
Another factor was the strengthening of US dollar that prompted investors to extend the previous day’s commodities selloff, analysts said.
Light, sweet crude for May delivery traded $3.24 lower, or 3.2%, at $99.30 a barrel on the New York Mercantile Exchange.
April crude settled $4.94 lower on Wednesday, in the contract’s final day of trading. The May contract also declined $5.96, or 5.5%.
The dollar firmed overnight against the euro, supported by speculators exiting from commodities positions, and the strengthening U.S. currency in turn only convinced more investors to get out of oil.