Wednesday, 20 October 2010

20oct2010 - Oil tumbles as dollar up after China surprise rates hike

Crude oil prices in Nymex for November contract month tumbles $3.59 or 4.32 percent at $79.49 as a stronger dollar hit the commodities market making dollar denominated oil more expensive. China central bank, People's Bank of China, raised interest rate to slow its economy from overheating on its property prices and inflation at 5.56% from 5.31%.

With such a bearish sentiment, cpo futures will be affected unless the Oct1-20 palm oil export is much better than expected earlier.