Oil dropped on April 20, 2009 as an index of US leading economic indicators dropped more than forecast in March 2009. The Conference board gauge points to the direction of the economy over the next six months and dropped 0.3%. The dollar traded near a five- week high versus the euro, decreasing the appeal of commodities as an inflation hedge.
“Oil demand won’t push up because there just hasn’t been any data supporting the idea that the economy has turned around,” said Clarence Chu, a trader at options dealer Hudson Capital Energy in Singapore. “The dollar gains have also been a big driver.”
In trading on April 20, 2009, crude futures dropped $4.45, or 8.8%, to $45.88 a barrel, the lowest settlement since March 11, 2009. It was the biggest fall since March 2, 2009. Prices are up 2.5% in 2009. The May 2009 contract expires tomorrow.
The more-active June 2009 futures were at $48.70 a barrel, up 19 cents, at 11:33 a.m. in Singapore. The futures fell $3.96, or 7.5%, to $48.51 a barrel on April 20, 2009.
Brent crude oil for June 2009 settlement was at $49.98, up 12 cents, on London’s ICE Futures Europe exchange at 11:36 a.m. Singapore time. The contract on April 20, 2009 dropped $2.80, or 5.3%, to $50.55 a barrel.
