Oil prices falling

July 30, 2008 | By Raymond Tan In Millionaire Thoughts |

Oil prices are falling yet again.

In fact, crude oil declined as the US dollar strengthened against the euro, limiting the appeal of commodities as an inflation hedge.

Oil has fallen 16 per cent since its July 11 record as the dollar has strengthened against the euro. Futures rose earlier as Royal Dutch Shell plc said it may suspend exports of Bonny Light crude from Nigeria after a militant attack in the Nembe Creek trunk line on Monday.

‘A stronger dollar translates into weaker crude,’ said Tom Bentz, a broker at BNP Paribas in New York. ‘The market is still kind of in this downward trend here in the short term and is having trouble turning back up.’

Good news for us oil consumers and bad news for the oil speculators

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