NEW YORK (CNNMoney.com) -- Oil prices retreated Friday as fraud charges against Goldman Sachs shook the markets and concerns about the Greek bailout plan sent the dollar higher against the euro.
What prices are doing: Crude oil for May delivery plummeted, dropping $2.27, or nearly 3%, to settle at $83.24 a barrel. This was the highest single-day decline since Feb. 5.
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Although May crude oil contracts don't expire until April 20, volume has ratcheted up in crude for June delivery. Prices for that contract settled at $84.51, down $2.24 on the day.
Prices soared midweek after the U.S. government reported the first decline in crude supplies in 10 weeks, and a round of economic data showed strong improvement in retail sales and low inflation.
What's moving the market: Prices fell after the SEC charged investment bank Goldman Sachs with fraud and concerns about Greece's financial stability resurfaced.
Late Thursday, Greek officials suggested they would shrink the size of the country's much-anticipated bond issue or abandon it. And groups in Germany indicated that they may sue over a possible bailout. The cost to insure Greek bonds against default rose as a result, indicating continued wariness about the region's prospects.
The dollar rose 0.5% to $1.350 as investors fled riskier currencies for relatively safer ones such as the greenback. A stronger dollar makes crude, which is priced in the U.S. currency, more expensive for foreign investors. This, in turn, tends to push down demand and prices.
Oil prices fell more sharply after the Securities Exchange Commission charged Goldman Sachs (GS, Fortune 500) with fraud, alleging the bank failed to appropriately disclose key information to investors about collateralized debt obligations backed by subprime mortgages.
What analysts are saying: The Goldman news spooked the stock market and spilled over into the oil markets, said Phil Flynn, a commodities analyst at PFG Best. The Dow Jones industrial average (INDU) fell by triple digits, retreating from fresh 18-month highs set on Thursday.
"There is some concern that this could be beginning of a regulatory backlash against banks and this could bad for the market," said Flynn.
"Investors are selling stocks wondering what's going to be the next shoe to drop," he said, adding that oil traders are taking the news as a potential sign of a slowdown in the demand for oil and adjusting their positions.
Looking ahead: Oil prices are likely to trade within a tight range for some time as bearish traders look for direction in weekly oil inventory and jobs reports. Prices could rise on bullish market news.
However, oil prices could see downward pressure if and when there are indications that China may balk at revaluating its currency, keeping the dollar strong. 
| Overnight Avg Rate | Latest | Change | Last Week |
|---|---|---|---|
| 30 yr fixed | 3.80% | 3.80% | |
| 15 yr fixed | 3.09% | 3.11% | |
| 5/1 ARM | 2.65% | 2.69% | |
| 30 yr refi | 3.77% | 3.86% | |
| 15 yr refi | 3.09% | 3.21% |
Today's featured rates:
| Index | Last | Change | % Change |
|---|---|---|---|
| Dow | 12,454.83 | -74.92 | -0.60% |
| Nasdaq | 2,837.53 | -1.85 | -0.07% |
| S&P 500 | 1,317.82 | -2.86 | -0.22% |
| Treasuries | 1.74 | -0.01 | -0.80% |
| Company | Price | Change | % Change |
|---|---|---|---|
| Bank of America Corp... | 7.15 | 0.01 | 0.14% |
| Sprint Nextel Corp | 2.62 | 0.09 | 3.56% |
| Cisco Systems Inc | 16.33 | -0.06 | -0.37% |
| Chesapeake Energy Co... | 15.81 | 0.23 | 1.48% |
| Ford Motor Co | 10.60 | 0.01 | 0.09% |
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