Money SA economy
A nine-month rally in oil prices could be faltering as a gradual sell-off that began in late October gains momentum.
Crude prices, which doubled from March to October, declined Friday for the eighth day in a row. The contract for January delivery gave up 67 cents to settle at $69.87 a barrel on the New York Mercantile Exchange. It's the first time that oil settled below $70 a barrel since early October.
Prices hit two-month lows as the dollar gained strength and investors took a second look at paltry demand figures in the West.
All energy prices were in retreat despite a report Friday from the International Energy Agency saying global oil demand will rise next year more than previously expected. Analysts said they've heard such talk before, and they are now looking for concrete signs of demand from both consumers and industry.
The IEA, an energy watchdog for some of the biggest crude consuming nations, said Friday that it was raising its estimates for 2010 global oil demand because of increased economic activity in Asia and the Middle East.
Meanwhile, the dollar has surged on a drop in U.S. unemployment and an anticipation that the Federal Reserve may raise interest rates.
In London, Brent crude for January delivery added 2 cents to settle at $71.88 on the ICE Futures exchange.
