Crude Oil Drops to Three-Week Low as Investors Seek Safe Havens
- Dollar rises as stocks, German yields drop on Brexit concern
- Surplus in first half of this year smaller than forecast: IEA
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Oil dropped to a three-week low in New York as risk aversion among investors sent equities lower and bolstered the dollar, reducing the appetite for commodities.
Futures fell 0.8 percent, capping a four-day decline of 5.3 percent. Increasing odds of a U.K. exit from the European Union boosted demand for havens, sending Germany’s 10-year bond yields below zero for the first time. Still, global oil markets will be almost balanced next year as demand continues to rise faster than output, while the current oversupply is much smaller than previously thought, the International Energy Agency said.