Crude Oil Takes A Hit As US Dollar Gains Ground

Crude oil today fell the most in the week, with the US dollar strengthening further, reducing the appeal of commodities. Speculations of an increase in US inventories also exerted pressure on oil prices.

Oil dropped up to 2.6% today, as the US dollar climbed against the euro after Greece's bonds tumbled and China took steps to restrain its lending. Crude oil for February delivery fell $1.60, or 2%, to $77.42 a barrel on the New York Mercantile Exchange (NYMEX). The more-active March contract declined $1.74, or 2.2%, to $77.58.

Meanwhile, Brent crude oil for March settlement declined $1.54, or 2%, to $76.09 a barrel on the London-based ICE Futures Europe exchange.