Oil prices dived by more than $4 a barrel this evening to hit a one-month low in New York. Analysts blamed a strong dollar, weak stock markets and sluggish US energy demand.
US crude dropped $4.11 to $46.22 a barrel, which was the lowest point since mid-March. Brent North Sea crude shed $3.40 to $49.95.
A rising US currency makes dollar-priced crude more expensive for foreign buyers and therefore tends to dampen demand. The dollar was stronger due to speculation that the European Central Bank will cut interest rates again in May.
Meanwhile, the oil minister of the United Arab Emirates said that oil at $50 a barrel would help bolster the global economy.
Mohammad al-Hamli was quoted as saying that the current price reflects the reality of the global recession, adding that 'reasonable' oil prices are needed for the revival of the global economy.
