 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
| . |  |
. |
London (AFP) June 22, 2010 Oil prices fell on Tuesday after surging in the previous session as investors weighed the effects of China's announcement that it would allow a more flexible yuan currency. New York's main futures contract, light sweet crude for delivery in July, dropped 88 cents to 76.94 dollars a barrel while London's Brent North Sea crude for August delivery was off 91cents at 77.91 dollars. China's weekend announcement it would "strengthen the flexibility" of the yuan had sent oil prices sharply higher Monday on expectations of higher demand from Chinese consumers. Analysts had interpreted the Chinese central bank's statement as a sign that Beijing was ready to adjust the dollar peg, which has been in place for two years, and allow the currency to rise. China has effectively pegged the yuan at about 6.8 to the dollar since mid-2008 to prop up exporters during the world financial crisis. Analysts said on Tuesday that oil prices retreated on signs that any strengthening of the yuan would be gradual. "The markets are now digesting the news and it would appear that it's not as significant an initiative by the Chinese as some people had hoped," said Jason Feer, vice president with energy market analysts Argus Media. "I think it's pretty clear the Chinese aren't going to allow a real float of the renminbi (yuan). Over the past few days it's been a financial story for oil, so there's probably been a bit of a pulling back," he told AFP. burs-bcp/hd
Share This Article With Planet Earth
Related Links Global Trade News
China calls for end to 'blame game' on yuanBeijing (AFP) June 22, 2010 China again warned Tuesday its yuan exchange rate would be off-limits at the coming Group of 20 summit, urging critics of its currency policy to stop "playing the blame game." "In the previous three G20 summits, a single country's currency has never been an (agenda) topic," foreign ministry spokesman Qin Gang told reporters. "Under the current circumstances, all (G20) parties should ... ... read more |
|
|
| The content herein, unless otherwise known to be public domain, are Copyright 1995-2010 - SpaceDaily. AFP and UPI Wire Stories are copyright Agence France-Presse and United Press International. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by SpaceDaily on any Web page published or hosted by SpaceDaily. Privacy Statement |
del.icio.us
Digg
Reddit
YahooMyWeb
Google
Facebook