Oil slides below $46 on stronger dollar, economic concern

• Source: xinhua
• [13:09 April 21 2009]
• Comments

Crude oil tumbled nearly 9 percent to below 46 US dollars on Monday as the dollar strengthened and investors grew more concerned about the economic recovery.

Light, sweet crude for May delivery dropped 4.45 dollars, or 8.8 percent, to settle at 45.88 dollars a barrel on the New York Mercantile Exchange.

The dollar hit a one-month high against a basket of currencies on Monday, which pressured the oil market and sent the crude futures nosediving.

Meanwhile, a sharp drop in the US equity market also dampened investors' sentiment. Major indexes halted a six-week gaining streak and lost more than 3 percent on Monday as worries about the banks' troubled loans resurfaced.

Also on Monday the International Monetary Fund (IMF) Managing Director Dominique Strauss-Kahn said that the agency will cut global economic forecasts in the coming week. Strauss-Kahn said that he expected a recovery to start in the first half of next year.

In London, Brent crude for June delivery fell 3.49 dollars to settle at 49.86 dollars a barrel on the ICE Futures Exchange.