Oil prices fell today after the euro briefly dived to a near seven-week low point against the dollar over the eurozone debt crisis and after the arrest of IMF head Dominique Strauss Kahn, traders said.
New York's main contract, light sweet crude for June, slid $1.15 to $98.50 a barrel.
Brent North Sea crude for delivery in June dropped 49 cents to $113.34 in late London deals, pulling back from losses of more than a dollar earlier in the day. Despite falling, crude futures remain at historically high levels.
The euro slumped Monday to $1.4048, hitting the lowest point since March 29. It later recovered to $1.4216, higher than Friday's close. A stronger dollar makes dollar-denominated commodities more expensive for buyers using weaker currencies. That tends to weigh on demand and spark lower prices.
Analysts suggested that mounting concerns about the future of the euro zone are leading to a stronger dollar. The arrest of IMF head Strauss-Kahn shortly before today's meeting of the eurozone finance ministers has made speedy approval of a new aid package for Greece less likely, some suggested.
