Oil Drops From 3 Year High

Oil Drops From 3 Year High

Oil fell, heading for the biggest decline in a week, as speculation that global supplies are sufficient prompted investors to sell contracts after yesterday?s rally to a 31-month high.

Futures slid as much as 1 percent before a report that may show U.S. supplies rose for the seventh time in eight weeks. Saudi Arabia is not comfortable with prices and is committed to keeping aside a ?sizable cushion? of idle capacity, Saudi Aramco Chief Executive Officer Khalid al-Falih said in Seoul today. Oil also dropped as the dollar index strengthened, reducing the appeal of commodities priced in the U.S. currency.

Source: Oil Drops From 3 Year High