WTI oil price trading around $82 on weaker US dollar

4 August 2010 4 August 2010

BonTrade

WTI oil prices open Wednesday’s trading session slightly lower and is hovering around the $82 mark as the US dollar remains weak against other currencies.

US Light crude oil futures for September 2010 delivery was at $82.13 a barrel, 08.30 GMT on the NYMEX.

“$80 was a strong resistance level…. The way we broke through 80, it seems market sentiment is a bit bullish.” said Clarence Chu, an oil trader with Hudson Capital Energy in Singapore.

If oil prices continue to rally, it could undermine consumer demand in the US and put at risk any clear recovery.

“The scary thought is what happens if oil hits $86 and keeps going,” Sander Capital said. “The US economy cannot take oil at $100 a barrel again.”

Meanwhile, a report from Asia showed that US crude oil inventories fell less than expected last week, suggesting oil demand in the US remains sluggish.