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Markets

Crude gains on Egypt unrest, stronger dollar weighs

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Investing.com - Crude prices moved slightly higher on Tuesday on lingering fears that unrest in Egypt may spread across the region and disrupt global supply, though a stronger dollar capped gains.

A stronger greenback makes oil a less attractive commodity in dollar-denominated exchanges, especially in the eyes of investors holding other currencies.

On the New York Mercantile Exchange, light sweet crude futures for delivery in August traded up 0.17% at USD103.32 a barrel on Tuesday, off from a session high of USD103.47 and up from an earlier session low of USD102.31.

Egypt's interim government worked to amend the country's constitution and also set parliamentary and presidential elections for early 2014 though fears unrest my affect the flow of oil through the Suez Canal sent prices climbing.

Violent clashes between supporters and opponents of ousted President Mohamed Morsi left more than dozens of people dead, according to various reports.

A stronger dollar dampened oil's advance.

The IMF cut its 2013 global growth forecast to 3.1% from a 3.3% prediction made in April and cut its 2014 growth forecast to 3.8% from 4.0%, which sent investors snapping up safe-haven positions in the dollar.

Slower economic growth also cuts into demand for fuels and energy.

On the ICE Futures Exchange, Brent oil futures for August delivery were up 0.01% at USD107.45 a barrel, up USD4.13 from its U.S. counterpart.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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