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Oil falls to U.S. $ 81 per barrel on Friday (29/10), as a stronger dollar and signs that U.S. economic growth slumped in the third quarter, leaving hope for monetary easing from the U.S. Federal Reserve has not changed.
Falling oil to U.S. $ 81 Due to Strengthening Dollar

Spanish King Juan Carlos went to the members during his visit to a Cepsa Cepsa refinery in Palos de la Frontera, Spain, October 27, 2010.

U.S. economic growth likely edged up 2 percent in the third quarter but no visible reinforcement strong enough to erode the high unemployment or a change of perception that more monetary easing from the Federal Reserve next week.

The dollar rose about 0.6 percent in a move to reduce the appeal of commodities like oil to both buyers holding other currencies and investors looking for safe alternatives.

U.S. crude for December fell 83 cents to $ 81.35 at 09:55 GMT, after edging up slightly on the previous day. Meanwhile, North Sea Brent oil fell 61 cents to U.S. $ 82.98 per barrel.

“I think it is a common allegation: the U.S. dollar strengthened further,” said oil analyst at Commerzbank Carsten Fritsch. “We menjangka range between U.S. $ 80 – U.S. $ 83 and will likely continue until at least next week’s Fed meeting: that would be a watershed for the market.”

U.S. Federal Reserve will announce a second round of the committee set to subside after a policy meeting on November 2 to 3 months.