Brent oil price trading at $75 as Euro stays at 4 year lows

4 June 2010 4 June 2010

BonTrade

Brent oil prices are trading around the $75 mark on Friday as the Euro fell as low as $1.2112 before easing off that low to $1.2155 against the dollar.

Brent crude oil futures for July Delivery was trading at $75.10 Singapore time on the ICE Futures Exchange. It’ seems to be all Euro weakness versus the US dollar at the moment, which is having some effects on oil prices.

The Euro slipped below the technical support level of $1.22 against the US dollar during the entire trading day, a sign of a change in ECB approach on whether Trichet is willing to let the currency weaken even further as measures are being taken to resolve the Eurozone issue.

Jean-Claude Trichet, Chairman of the ECB, and many European Finance Ministers, have said during the past several days that they are not worried about the continued weakness of the Euro. Their change of policy now comes to fruition and they are willing to let the Euro fall freely, albeit in an orderly fashion.