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Commodities: Oil down for second day

Date: Tuesday 16 Mar 2010

Oil prices fell for the second day running to below $80 a barrel amid fears that China will take further measures to cool the country's growth.

Crude oil for April delivery closed down $1.44 at $79.80 a barrel on the New York Mercantile Exchange.

A resurgent dollar also weighed on oil prices as the gloomier stance on the world economy spurred demand for safe haven assets. Traders were reluctant to buy oil as Shanghai's main stock index fell to its lowest close in five weeks and ahead of President Obama’s upcoming US financial regulation overhaul bill.

The dollar rose after the New York Federal Reserve Bank's Empire State Manufacturing Index came in better than expected. It fell to 22.9 in March from 24.9 in February.

Trading was also cautious ahead of the Federal Reserve’s decision on interest rates this week. OPEC’s meeting in Vienna is scheduled for Wednesday but members aren’t expected to make any changes.

Gold marked modest gains on Monday supported by jitters about Europe’s debt problems. Gold for April delivery added $3.70 to end at $1,105.40 an ounce on the Comex division of the New York Mercantile Exchange.

Gold’s safe haven qualities were in demand amid increasing unease about the ratings of the UK, Germany, France and the US.

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