WTI oil trading over $77 as US Dollar Index opens lower

13 September 2010 13 September 2010

BonTrade

WTI oil prices open the week’s trading session up over a dollar and through the $77 mark as the US Dollar Index looses some ground and reverses last weeks gains.

US Light crude oil futures for October 2010 delivery were trading at $77.40, 07.55 GMT on the NYMEX, the ICE Dollar Index, which tracks the US dollar against a trade weighted basket of currencies was at 82.351 at 0350 GMT, down from 82.723 late Friday in New York.

US Crude Oil Pipeline Leak Adds to Trading Gains

Meanwhile, an oil leak from a major US oil supply pipeline disrupted supplies to US Midwest refineries over the weekend. Repair crews are closing in on the source of the leak but haven’t found it yet.

The 670,000 barrel per day pipeline run by Enbridge Energy Partners carries crude oil from Canada to the upper US Midwest, and the supply disruption has caused a sharp spike in WTI oil prices.

China Data Pleases Traders

Oil traders also took heart from accelerating Chinese industrial production and the latest oil report out from the IEA. Chinese manufacturing rose 13.9 percent in August from a year ago, faster than the 13.4 percent growth pace in July, China said over the weekend. The IEA have increased their forecast for global oil demand for 2010 and 2011.