Oil prices fell below $99 a barrel on Monday in Asia as crude became more expensive for investors with other currencies amid a U.S. dollar rally.
Benchmark crude for June delivery was down 84 cents to $98.81 a barrel at midday Singapore time in electronic trading on the New York Mercantile Exchange. The contract settled at $99.65 per barrel on Friday, up 68 cents.
In London, Brent crude for June delivery was down 44 cents to $113.39 a barrel on the ICE Futures exchange.
Oil has retreated from a 30-month high near $115 at the beginning of the month as the dollar has strengthened.
“Crude oil continues to shadow the dollar to a large degree,” Ritterbusch and Associates said in a report. “We still look for high negative correlation between the dollar and oil.”
The euro fell to $1.4089 from $1.4110 late Friday. The euro reached $1.49 earlier this month.
Analysts are also closely watching for signs that soaring U.S. fuel costs gasoline tops $4 a gallon in some areas are undermining crude consumption.
