Oil prices fall below US$96 as ECB president voices concern about rise in euro

NEW YORK, N.Y. – The price of oil fell below US$96 a barrel Thursday after the head of the European Central Bank expressed concern over a recent rise in the euro.

European Central Bank president Mario Draghi pledged Thursday to keep a close eye on the economic impact of the rise of the euro, which has gained on the dollar in recent months.

The euro was down against the dollar to $1.3391 on Thursday from $1.3525 on Wednesday. However, it has risen from US$1.23 in mid-August to over US$1.35 this week.

A strong euro hurts the export prospects of the 17 countries in the common currency zone. It also tends to result in higher oil prices by making crude priced in U.S. dollars cheaper — and a more enticing investment — for traders using currencies other than the greenback.

Benchmark crude for March delivery fell 77 cents to US$95.85 a barrel in midday trading on the New York Mercantile Exchange. In London, Brent crude, used to price international varieties of oil, was up 29 cents to US$117.02 a barrel on the ICE Futures exchange.

In other energy futures trading on Nymex: wholesale gasoline fell three cents to US$3.01 a U.S. gallon (3.79 litres), heating oil gained two cents to US$3.20 a gallon and natural gas dropped eight cents to US$3.34 per 1,000 cubic feet.

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