Commodity Online
NEW YORK: Oil prices fell by more than $ 4 a barrel from last week’s record highs as the US dollar firmed against the euro and oil giant Saudi Arabia stressed its willingness to meet any increase in demand.

Crude oil for July delivery fell $4.19, or 3%, to settle at $134.35 a barrel on the New York Mercantile Exchange. Futures, which reached a record $139.12 on June 6, are more than double the level of a year ago.

In London, Brent North Sea crude for July delivery dropped $3.78 to settle at $133.91.

Saudi Arabia's oil minister, Ali al-Naimi, called for a meeting of oil producing and consuming nations to discuss how to deal with record prices. Saudi Arabia said it had increased production this month and has told all the oil companies it deals with that it's ready to provide them with additional supplies, if needed.

Crude oil also fell as the dollar climbed against the euro for the first time in three days as US stock indexes advanced. The falling dollar has spurred investors to purchase commodities as a hedge against the US currency's decline. The dollar's drop has helped lead oil, gold and corn to records this year.

The dollar increased 0.8% to $1.5646 per euro in New York, from $1.5778 on June 6. The US currency has declined 6.7% this year.

On Friday, the two benchmark crude oil futures contracts hit record all-time highs of $139.12 in New York and $138.12 in London.

Energy ministers from the Group of Eight industrialized nations met yesterday in the northern Japanese city of Aomori with officials from China, India and South Korea.

The 11 nations voiced “serious concerns” over the level of oil prices and said there was an “urgent need for increased and timely investment in the energy sector.”

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