Oil prices drop below $110

April 14, 2008 5:31:16 AM PDT
Oil prices are down Monday.

Credit goes to expectations that the U.S. dollar may strengthen after global financial leaders said over the weekend they're concerned about volatility in major currencies.

Crude oil's recent run above $100 a barrel has been largely attributed to the steadily depreciating U.S. currency, because a weakening dollar attracts investors to commodities as a hedge against inflation. When the dollar rises, the effect tends to reverse, with oil also becoming more expensive to overseas investors.

Light, sweet crude for May delivery fell 53 cents to $109.61 a barrel in Asian electronic by midmorning. It settled at $110.14 a barrel Friday.