Strengthening of U.S. Dollar & European Crisis 'Threatens' Oil

Oil prices trade lower on Friday (6 / 1), but the sentiment of U.S. dollar strengthening and fears of European crisis presents new pressures in the middle of the potential disruption of crude supplies from the Middle East.

Brent oil prices still strengthened with rises of more than 4% and U.S. crude oil rose more than 2% during this week, sparked by the Iranian threat to close the oil-shipping route through the Strait of Hormuz, in retaliation for sanctions by the United States and ban on exports of crude oil to Europe.

In Friday trading, U.S. oil prices fell 25 cents to U.S. $ 101.56 per barrel and Brent crude oil futures ended to the level of U.S. $ 113.07 per barrel, this figure is slightly strengthened than last week's trading Friday at U.S. $ 112.45.

 Total trade volume of crude oil continues to soar after the holiday season, with Brent only 7% below the average price of 30 days, so that the trade turnover soared in New York.

"The euro is the main driver and very bearish at this point, especially when I saw Brent in the euro exchange rate and has become very expensive," said President Michael Korn Skokie Energy in Princeton, New Jersey, as quoted by CNBC.com, Saturday (7 / 1).

The euro exchange rate lowest in 16 months against the dollar in trading yesterday, as investors compare between conditions of the euro zone with the U.S. economic recovery.

The U.S. government reported that the unemployment rate fell to its lowest level in the last 3 years which to 8.5%. This shows a strong economic recovery in the country with the world's largest oil consumer.

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