Brent oil price takes a hit in heavy trading, higher dollar

5 May 2010 5 May 2010

BonTrade

Brent oil prices took at hit in a heavy trading session on Tuesday, finishing the day down near $3.00 as investors took flight into the US dollar as fears that Greece’s debt woes could spread to other countries.

Brent crude oil futures for June 2010 delivery is currently at $85.66 a barrel on the ICE Futures Exchange. The US dollar hit a 12 month high against the euro.

“The bulk of oil selling seems to have been connected to a fresh round of risk repudiation that seems to have been tied directly to the Greek bailout – and its undercurrent of concern for Spain, Portugal and others.” said Peter Beutel, of trading advisory firm Cameron Hanover.

Oil traders are also watching for confirmation from the US government that crude stocks in the US have continued to build, the data is out for release at 10:30 am ET today.

Brent oil prices touched close to the $90 mark in the last few trading days, however oil futures prices seem to still have big direction shifts dependent on global stock markets, as seen in yesterday’s dip lower.