Oil Falls Below $70 As Euro Sinks To 4-Year Low

Oil prices dropped below $70 a barrel Monday in Asia as the euro sank to a four-year low and stock markets tumbled on investor concern Europe’s economy will wither amid a debt crisis and fiscal austerity measures.

Benchmark crude for June delivery was down $1.64 to $69.97 a barrel at late afternoon Singapore time in electronic trading on the New York Mercantile Exchange. The June contract lost $2.79, almost 4 percent, to settle at $71.61 on Friday.

 
Crude fell as low as $69.82, the lowest since $69.59 on Feb. 5, as the U.S. dollar gained against the beleaguered euro, which was at a four year-low. Oil, which is priced in dollars, becomes more expensive to investors holding other currencies when the dollar advances.
The euro fell to $1.2279 on Monday from $1.2352 on Friday while the dollar slid to 92.03 yen rom 92.30 yen.
Asian stock markets also plunged Monday, and oil investors often look to equities as a sign of overall investor confidence.

“It’s a sea of red out there,” said Victor Shum, an energy analyst with consultancy Purvin & Gertz in Singapore. “The euro concerns have really impacted confidence among investors across markets.”
$”Oil will be under pressure as long as the dollar is surging,” he said.
In other Nymex trading in June contracts, heating oil fell 3.11 cents to $2.0393 a gallon, and gasoline fell 3.77 cents to $2.0931 a gallon. Natural gas was steady at $4.313 per 1,000 cubic feet.
In London, Brent crude was down $1.08 to $76.85 on the ICE futures exchange.