Tumbling stocks, stronger dollar drive down oil
NEW YORK, USA – OIL prices tumbled below US$83 a barrel yesterday on a stronger dollar and a falling stock market as investors worried about the ongoing European financial crisis.
After setting an 18-month high during trading Monday, benchmark crude for June delivery fell US$3.45, or four per cent, to settle at US$82.74 a barrel on the New York Mercantile Exchange.
The decline came as stocks dropped sharply around the world over concerns that European countries would fail to approve a US$144 billion bailout package for Greece. That could make it more difficult to rescue a larger country like Spain, which also has financial problems.
The Dow Jones industrial average fell about 230 points shortly before the close, erasing a 143-point gain on Monday.
