Brent oil price trading near $81 on weaker US dollar

17 March 2010 17 March 2010

BonTrade

ICE Brent oil price is trading over two percent higher, near $81 a barrel on Wednesday as a weaker US dollar fell against the euro, sterling and other currencies (Dollar Index). May Brent crude oil futures on London’s ICE Futures Exchange rose to $80.96 a barrel in busy trading.

Crude prices rose by more than 2% Tuesday after the US Federal Reserve’s decision to keep interest rates low increased investors’ appetite for riskier assets such as commodities.

“The main driver is still the US dollar at the moment,” said Mark Pervan, head of commodities research at ANZ Global Markets, adding that the US central bank’s policy announcement will likely keep the dollar’s value lower for longer.

“Oil prices continue to be supported by the soft tone of the US dollar, while the industry data showing a fall in gasoline is also somewhat supportive,” said David Moore, an oil analyst at the Commonwealth Bank of Australia.