Jun 16--U.S. crude oil price plunged over 4 percent on Wednesday as a surging dollar triggered sell-off and weak U.S. economic data caused demand concerns.

The euro fell to its lowest level in more than two weeks against the dollar as Greek debt problems remained unsolved and started to escalate. Concerns about a potential Greek debt default and about its impact on European banks weighed on the euro. The euro dropped nearly 2 percent against the dollar, heading to its worst day in one month.

The dollar index, as a result, surged about 1.7 percent, making oil much more expensive for investors and triggering a technical sell-off.

Meanwhile, several U.S. economic data came in weak on Wednesday. According to the Federal Reserve Bank of New York, manufacturing in the New York region contracted unexpectedly in June on parts shortage after Japan's earthquake. The Empire State index fell sharply by nearly 20 points to minus 7.79, the lowest level since November, well below the economists' forecast of 12.

Besides, the CPI in May rose 0.2 percent, higher than economists' estimate for no change, indicating the rising inflation pressure for the U.S. economy.

As the biggest oil consumer, the U.S. economy played an important role in the crude markets. Weak data meant a softer demand, pushing oil lower.

Light, sweet crude for July delivery fell 4.56 dollars, or 4.59 percent to settle at 94.81 dollars a barrel on the New York Mercantile Exchange. In London, Brent crude for July delivery also dropped sharply and last traded around 117 dollars a barrel. 


(Source：Xinhua)