WTI oil price closes over $76 on higher stock markets

WTI oil prices close the week trading higher, over $76 a barrel as higher stock markets in Europe and the US have a positive effect on commodities and the US dollar weakens.

US Light crude oil futures for November 2010 delivery closed at $76.49 a barrel on the NYMEX, nearly $3 higher than last week’s closing price of $73.65.

Positive news in several categories of US durable goods orders helped boost WTI oil prices nearly two percent on Friday.

The US stock market moved higher on Friday with the Dow Jones adding 197.84 points, or 1.86%, to close at 10860.26, its biggest one day rise since 1st September 2010.

Oil, Gold and Silver Prices Gain

On the commodity markets silver climbed to the highest price since 1980 as the dollar’s slump boosted demand for precious metals as alternative assets. Gold was little changed after rising to a record, topping $1300 an ounce, and oil prices are roughly four percent higher this week.

Meanwhile, the US dollar weakened against most other currencies and a weaker dollar encourages investors to buy oil futures, which is traded in the US currency.

“The US dollar’s weakening seems to have rallied not only oil, but gold and copper. This helps the commodity sector broadly,” said Bart Malek of BMO Capital Markets.

The US dollar finished sharply lower this week after the US Federal Reserve hinted that it would provide more aid to prevent the US economy from derailing.