Brent crude dropped to the lowest in almost five months as European Central Bank President Mario Draghi said the economic recovery in the euro area was subject to downside risks. U.S. jobless claims rose unexpectedly.
Brent for May settlement on the London-based ICE Futures Europe exchange fell as much as 0.9 percent to $106.18 a barrel, the lowest intra-day price since Nov. 8. It was at $106.42 a barrel at 2:05 p.m. London time.
“The dollar is rising with Draghi being very dovish at the press conference and is gearing up for a rate cut while jobless claims are obviously not helping,” Ole Hansen, head of commodity strategy at Saxo Bank A/S in Copenhagen, said today by e-mail.