Rising unemployment claims, falling stock markets, and a stronger dollar combined to produce Thursday’s dive in crude and heating oil prices. The surprisingly large increase in jobless claims undermined optimism regarding economic recovery, and pushed down prices in stock markets and commodities markets. Despite the poor economic news, the dollar rose against the euro, which is losing value as Greece and other southern European nations face budget crises. A strong dollar makes commodities priced in dollars, such as heating oil and crude oil, more expensive to investors who hold other currencies. That constricts demand and contributed to Thursday’s falling oil prices.
