Oil prices fell sharply today as the US dollar strengthened on another volatile day on world oil markets.
US crude slumped $4 to $132.42 a barrel, having surged by $5 the previous day after a US government report showed that the country's crude reserves dipped for a fourth week running. Brent North Sea crude sank $2.72 to $132.30.
The dollar jumped against rival currencies this afternoon after news that US retail sales surged by a stronger than expected 1% in May. A stronger dollar tends to dampen demand for crude because it becomes more expensive for foreign buyers.
New York crude had struck a historic high $139.12 last Friday, when it gained a record-breaking $10.75 in one day's trade. Brent crude had hit a historic peak of $138.12 last Friday.
