The price of oil fell to near $95 a barrel today, reflecting the recent strengthening of the dollar against the yen and other major currencies.
By early afternoon in Europe, benchmark oil for June delivery was down 71 cents to $95.33 a barrel in electronic trading on the New York Mercantile Exchange. The contract fell 35 cents on Friday.
Brent crude, which is a benchmark for many international oil varieties, was down 91 cents to $103 a barrel on the ICE Futures exchange in London.
The stronger dollar is causing oil prices to fall, analysts said. The dollar has risen in recent days against the euro and last week passed the 100-yen mark for the first time in four years.
Since oil is traded in dollars, a stronger dollar makes crude and other commodities less appealing to investors with other currencies.
An increase in OPEC's output, which grew by 280,000 barrels to 30.46 million barrels a day in April compared with March, also helped drag down prices by boosting concerns about excess supply.
