Milton Financials: Oil price dips after news of China’s shock rate move.

Oct. 19, 2010 - PRLog -- China’s central bank’s announcement that it is to increase interest rates for the first time in 3 years to curb inflation in its booming economy, coupled with a strengthening dollar saw oil prices drop by over two percent.

Fears that China’s announcement may possibly slow its demand for oil sent the oil price and other commodities prices lower and forced investors to cut exposure to risk by selling the euro and commodity sensitive Australian dollar and buying the U.S. Dollar, Milton Financials sources reported.

"This dollar-driven move has pulled down prices across the board in the oil markets," commodity trader Tom Knight at Truman Arnold told reporters.

US crude for November delivery dropped by $1.84, or 2.21 per cent, to $81.24 per barrel on track to post the biggest percentage loss since late August.

Milton Financial has been told that comments by U.S. Treasury Secretary Tim Geithner also supported the dollar’s recovery. Geithner vowed that the U.S. was not prepared to engage in competitive currency devaluation.


The French strike at the Fos-Lavera oil port has entered its 23 day and the government has been forced to tap into emergency reserves this week.

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