WTI oil trading flat at $75, US Dollar Index awaits direction

17 August 2010 17 August 2010

BonTrade

WTI oil prices open trading on Tuesday flat, near the $75 mark as light activity in markets coninues through the holiday period and the US Dollar Index awaits direction higher or lower.

US Light crude oil futures for September 2010 delivery was trading at $75.22 a barrel 08.00 GMT on the NYMEX, little vhanged from the day’s opening price.

The ICE Futures US dollar Index, which tracks the dollar versus a basket of currencies, was last down 0.6 percent to 82.477, however as yet, oil prices remain flat as other commodities gain ground, including gold prices.

It’s worth noting that the ICE US Dollar Index gained over three percent in currency trading markets last week, the biggest weekly rise in nearly two years.

Investors maybe starting to stay away from the US dollar following poor economic data from the world’s largest economy. A falling dollar would have an opposite effect on oil prices, but at the moment we will have to see how it starts to play out.