Saving the exchange rate euro reduces the price of oil

The growth of the euro exchange rate makes oil cheaper

In brief: Oil prices have been in direct inverse proportion to the currency exchange rate euro, the more expensive European currency is, the faster oil goes on run.

The European Union puts the main task of saving its currency – euro. The exchange rate euro stabilized in growth. Euro exchange rate makes new troubles. Oil prices fell Tuesday below $ 76 a barrel after the financial market euphoria over 1 trillion fund for the EU has exhausted itself, reports Reuters. After a brief restoration of the euro against the dollar, the U.S. currency began to grow again to major currencies. The June contract for WTI Light fallen in price on 1.17 dollars to 75.63 dollars per barrel, Brent – at 0.88 dollars to 79.24 dollars per barrel.

Euro began to rally, but then returned to the original position – stated in an interview with the commodity analyst at Credit Suisse Stephen Graber. – Will the trust completely restored depends on the uncertainty of implementation of the approved program. I do not think that we have left all danger behind. The Organization of Petroleum Exporting Countries still more optimistic and the progress report in 2010 raised its estimate for world oil demand, but the source of the agency Dow Jones reported that OPEC intends to assemble an emergency meeting if oil prices plunge to $ 60 per barrel. On the agency said a senior source in the Libyan state-owned National Oil Co.

According to him, oil prices are highly volatile “We do not expect them to go below 60 dollars per barrel, instability causes chaotic fluctuations in commodity prices. Now, when the crisis is allowed, we do not care, but we are concerned about the sharp market fluctuations, “- said the representative of the oil company of Libya.

Ukrainian Globalist
2010-05-11 17:34, Currency news.

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