Oil Drops as ECB’s Draghi Says Economic Risks Remain

Crude dropped in New York after the dollar rose against the euro as European Central Bank President Mario Draghi said economic risks remain after the bank cut rates to a record low.

Futures fell as much as 1.3 percent as the dollar reached a one-month high against the common currency. Draghi said there were “downside risks” to the euro-area’s economic outlook. Prices briefly advanced after an Energy Department report showed that U.S. crude supplies fell 4.27 million barrels to 382.9 million last week, the biggest decrease since December.

“The dollar is the only place to be,” said Marshall Berol, co-portfolio manager of the Encompass Fund in San Francisco, which has about $300 million in assets. “The ECB is trying to stimulate the economy, and there are a lot of doubts about their ability to turn things around. The dollar is strong while just about every other market is weak.”

Read Full Article from Bloomberg

- Posted: 2012-07-05 13:12:05

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