NEW YORK (AP) — Oil dropped about 2 percent Monday as the dollar strengthened against other currencies.
Benchmark West Texas Intermediate crude for August delivery gave up $1.89 at $95.35 per barrel on the New York Mercantile Exchange. In London, Brent crude lost $1.65 at $115.61 per barrel on the ICE Futures Exchange.
Oil fell as the dollar rose against the euro and other major currencies. Oil, which is priced in dollars, tends to drop as the greenback strengthens and makes oil more expensive for investors holding foreign currency.
Traders have been rattled by concern that Greece’s debt crisis could spread to other European countries and further undermine already weak economic growth.
In Washington lawmakers have yet to agree on a government spending two weeks ahead of a deadline to raise the nation’s debt ceiling. Ratings agencies have put the U.S. credit rating on downgrade watch as a result. While seen as unlikely, a U.S. default on its debt would have serious repercussions on the global economy.
Meanwhile gasoline pump prices were unchanged at $3.676 per gallon, according to AAA, Wright Express and Oil Price Information Service. A gallon of gasoline is 31 cents cheaper than peak levels set earlier in May, but it’s still 95.3 cents more expensive than the same time last year.
In other Nymex trading for August contracts, heating oil fell 4 cents to $3.0765 per gallon and gasoline futures lost 5 cents at $3.0816 per gallon. Natural gas added 4 cents at $4.563 per 1,000 cubic feet.