Investing.com - Crude oil futures hit a 3 week low after European Union officials stated that a pending Iranian oil embargo may be delayed for six months, and a surging U.S. dollar .
On the New York Mercantile Exchange, light sweet crude futures for February settlement traded at USD98.64 a barrel during early U.S. trade dropping 0.43%.
It earlier climbed to USD100.19 and hit a low of 97.70. Strength in the U.S. dollar increased downward pressure on oil prices.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, advanced 0.91% to trade at 81.80.
Dollar strength generally lowers commodity prices, as it decreases their appeal as an alternative asset and makes dollar priced commodities more expensive for holders of other currencies.
Crude fell after euro zone officials said the Iranian embargo will be delayed to allow nations to find other suppliers.
Oil's decline accelerated on word that Greek bank creditors talks with the government have paused.
Chris Dillman, of Tradition Energy, explained today's situation to Bloomberg, "We are still digesting the Iran news. Anything that reduces tensions with Iran will send prices lower."
Iran is the world's fourth largest producer of oil hence when embargo fears lessen oil prices should drop.
The euro plunged, sending the commodity complex lower, after a group representing Greek's creditors stated that talks have "paused for reflection" increasing speculation that a settlement can not be reached.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for February delivery fell 0.71% to trade at USD110.47 a barrel, up USD11.86 on its U.S. Counterpart.
This greater than USD10.00 spread is near historic highs. The two contracts traditionally trade within USD1.00 of each other.
On the New York Mercantile Exchange, light sweet crude futures for February settlement traded at USD98.64 a barrel during early U.S. trade dropping 0.43%.
It earlier climbed to USD100.19 and hit a low of 97.70. Strength in the U.S. dollar increased downward pressure on oil prices.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, advanced 0.91% to trade at 81.80.
Dollar strength generally lowers commodity prices, as it decreases their appeal as an alternative asset and makes dollar priced commodities more expensive for holders of other currencies.
Crude fell after euro zone officials said the Iranian embargo will be delayed to allow nations to find other suppliers.
Oil's decline accelerated on word that Greek bank creditors talks with the government have paused.
Chris Dillman, of Tradition Energy, explained today's situation to Bloomberg, "We are still digesting the Iran news. Anything that reduces tensions with Iran will send prices lower."
Iran is the world's fourth largest producer of oil hence when embargo fears lessen oil prices should drop.
The euro plunged, sending the commodity complex lower, after a group representing Greek's creditors stated that talks have "paused for reflection" increasing speculation that a settlement can not be reached.
Elsewhere, on the ICE Futures Exchange, Brent oil futures for February delivery fell 0.71% to trade at USD110.47 a barrel, up USD11.86 on its U.S. Counterpart.
This greater than USD10.00 spread is near historic highs. The two contracts traditionally trade within USD1.00 of each other.