Oil prices trading lower as US dollar makes gains

Crude oil prices are trading slightly lower on Wednesday in Asia, inversely tracking a strengthening US dollar, which discouraged investors from buying commodities, such as oil, that are priced in US dollars. US Light crude oil futures for delivery in May traded at $81.22 a barrel at 0633 GMT, down $0.69 on the NYMEX, while in London, Brent crude oil futures on the ICE Futures Exchange fell $0.61 to $80.09 a barrel. “In order for the currency factor to reacquire status as a major driver of oil price, we feel that a breakdown of the euro into new lows will need to be seen,” said Jim Ritterbusch, president of Ritterbusch & Associates, in a note to subscribers. “A firmer US dollar in recent days has also kept oil prices down as uncertainty over a European plan to ease Greece’s debt crisis weighed on the euro” said Serene Lim, a Singapore-based oil analyst with ANZ bank. “The correlation between oil and the dollar has strengthened over the past few weeks and I think that’s also putting some pressure on oil prices” she added. “You might look at that as confirmation that the momentum behind the dollar is now positive,” said Adam Cole, head of global currency strategy at Royal Bank of Canada in London. “The dollar gains by default because the rest of the world looks more negative.” The Index gained 3.5 percent this year to 80.581 as of 4:25 pm in London on Tuesday. The measure, which fell 4.3 percent last year, may gain another 5 percent by the end of 2010, Cole said. Oil prices trading steady around $80, stronger US dollar Oil prices & commodities trading higher, US dollar slides Brent oil trading below $80, US dollar holding down prices Oil prices trading down two percent on stronger US dollar Crude oil prices trading lower on stronger US dollar Crude oil prices trading under $81 eyes on Fed, US dollar Oil prices trading steady, awaits US crude inventory data Oil prices trading down two percent on stronger US dollar Light oil prices trading around $74, eyes on US Dollar Oil prices trading higher amid stronger US Dollar, Europe Higher US dollar sends oil prices back to $70 range Crude oil prices trading higher, eyes on US Dollar Index Oil prices trading negative on profit taking, stock markets Oil prices trading steady, eyes on US dollar index Oil prices above $82 as traders look to US supplies, OPEC Oil prices targeting $85 mark as OPEC meets, dollar falls Oil prices trading steady amid a weaker US dollar Light oil prices end the week well above $80 trading range Oil prices trading near 2010 highs on latest US jobs data Oil prices trading steady as US dollar makes gains

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Oil prices trading lower as US dollar makes gains