Brent oil trading back at $79 as Asian markets dip lower

11 August 2010 11 August 2010

BonTrade

Brent oil prices are trading back around the $79 a barrel mark today as stock markets in Asia dip lower amid concerns that any global recovery could be moving further away.

In London, Brent crude oil futures for September 2010 delivery was trading at $79.27, 06.00 GMT on the ICE Futures Exchange after loosing over one percent in late trading yesterday.

Growing concerns over the global recovery pushed most Asian stock markets lower after the US central bank vowed to renew crisis-era stimulus measures to kickstart a weak US economy.

Meanwhile, the US dollar is gaining some strength as investors once again turn to the currency as a apparent safe haven, which is helping to push both Brent and WTI oil prices lower this morning.

However the real story is that the US Fed is basically putting some US dollar money supply back into the markets, which will have a reducing effect on the value of the US dollar in the longer term, driving up commodities including Brent and WTI oil futures.