Brent oil price nears $85 on weaker US Dollar Index

6 October 2010 6 October 2010

BonTrade

Brent oil futures open trading near $85 a barrel as oil prices moved higher mainly due to US Dollar Index weakness in currency markets.

In London, Brent crude oil futures for November 2010 delivery was trading at $84.90 06.40 GMT on the ICE Futures Exchange and the ICE Dollar Index traded lower at 77.763 this moring, from 77.811 late on Tuesday.

Additional Oil Price Gains Likely

“We look for the euro to be the primary price driver behind upcoming swings in the value of oil futures. Additional oil price gains would appear highly likely.” Ritterbusch and Associates said in a report.

Record Gold Prices and Oil Back at $100?

Meanwhile, gold and silver set new record prices yesterday, with gold reaching $1328 an ounce, another all time high and silver posting its highest price since March 1980.

Zachary Oxman, managing director at TrendMax Futures said the record high in gold and the weakness in the US dollar “bode well for a rally in crude” in the near term. He expects gold to hit $1,500 an ounce later in 2010, bringing crude oil prices up to $100 a barrel for the first time since the end of September 2008.