Oil breaks 70 U.S. dollar mark as dollar strengthens

Oil prices settled lower after falling below 70 U.S. dollars on Friday, as dollar strengthened against euro amid concerns over sovereign debt crisis in Europe.

Investors are concerned about the rising budget deficit in Portugal, Spain and Greece, which sent the euro for a fourth weekly loss against the dollar. The greenback on Friday touched the highest level against the euro in more than 10 months, pressuring on oil prices.

Mixed economic data offered oil little support. The U.S. Labor Department reported on Friday that 20,000 jobs were lost in January even though the unemployment rate fell to 9.7 percent from 10 percent in December.

The latest government inventory report released on Wednesday showed that crude stockpiles increased surprisingly as energy demand declined in the world's largest oil consumption country.

Light, sweet crude for March delivery fell 1.95 dollars, or 2.7 percent, to settle at 71.19 dollars a barrel on the New York Mercantile Exchange. Futures touched 69.50 dollars a barrel during trading.

In London, Brent crude for March delivery dipped 1.94 dollars to 70.19 dollars a barrel on the ICE Futures Exchange.

Source:Xinhua