WTI oil trading back under $74, ICE Dollar Index gains

WTI oil prices are trading back under the $74 a barrel mark early on Tuesday as the ICE Dollar Index gains ground and US stock markets close back near the 10,000 mark.

US Light crude oil futures for October 2010 delivery was trading at $73.50, 07.45 GMT on the NYMEX, a massive three percent loss over today’s opening price.

The ICE Dollar Index, which tracks the dollar against a trade-weighted basket of currencies, was at 83.160.

The Dollar Index rose for the first day in four after breaking its downtrend on August 11th, the US dollar edged higher and consolidated gains. Support is in the 82 area and resistance in the 83.50 area.

A possible test of the 83.50 resistance may occur later this week. If this is broken, the Dollar Index could rally upto 85. This would be bearish for risky assets including oil prices and commodities.

Meanwhile, The euro is down against the US dollar as traders await new European and US data for indications on the state of the global economy.