BANGKOK – Oil prices tumbled to near $86 a barrel Friday in Asia as investors shifted from commodities to the dollar amid renewed fears about a debt crisis in Europe and slowing growth in China.
Benchmark oil for December delivery was down $1.59 to $86.22 a barrel at late afternoon Bangkok time in electronic trading on the New York Mercantile Exchange.
The contract settled unchanged at $87.81 on Thursday after earlier hitting a two-year high on news that U.S. crude and gasoline stockpiles declined last week in a sign of improving demand for fuel.
Oil prices have climbed steadily in recent weeks because the dollar has weakened against other currencies. That's largely because of the Federal Reserve's decision to pour $600 billion into a bond-buying program to stimulate the U.S. economy.
But oil retreated Friday as the dollar gained against the euro, making the commodity more expensive for buyers holding that currency.
Also hitting sentiment was a plunge in Chinese stock markets on concerns Beijing will take more steps to cool economic growth after inflation hit a 25-month high in October. China is the world's largest energy consumer.
The euro was down about 0.3 percent to $1.3608, dented by mounting speculation that Ireland — one of Europe's most financially troubled countries — would not be able to cut public spending and may have to resort to a bailout. That revived fears of a wider European debt crisis.
In other Nymex trading in December contracts, heating oil fell 3 cents to $2.40 a gallon and gasoline was flat at $2.24 a gallon. Nautral gas dropped 2 cents to $3.91 per 1,000 cubic feet.
In London, Brent crude slid $1.36 to $87.74 a barrel on the ICE Futures exchange.
Benchmark oil for December delivery was down $1.59 to $86.22 a barrel at late afternoon Bangkok time in electronic trading on the New York Mercantile Exchange.
The contract settled unchanged at $87.81 on Thursday after earlier hitting a two-year high on news that U.S. crude and gasoline stockpiles declined last week in a sign of improving demand for fuel.
Oil prices have climbed steadily in recent weeks because the dollar has weakened against other currencies. That's largely because of the Federal Reserve's decision to pour $600 billion into a bond-buying program to stimulate the U.S. economy.
But oil retreated Friday as the dollar gained against the euro, making the commodity more expensive for buyers holding that currency.
Also hitting sentiment was a plunge in Chinese stock markets on concerns Beijing will take more steps to cool economic growth after inflation hit a 25-month high in October. China is the world's largest energy consumer.
The euro was down about 0.3 percent to $1.3608, dented by mounting speculation that Ireland — one of Europe's most financially troubled countries — would not be able to cut public spending and may have to resort to a bailout. That revived fears of a wider European debt crisis.
In other Nymex trading in December contracts, heating oil fell 3 cents to $2.40 a gallon and gasoline was flat at $2.24 a gallon. Nautral gas dropped 2 cents to $3.91 per 1,000 cubic feet.
In London, Brent crude slid $1.36 to $87.74 a barrel on the ICE Futures exchange.
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