WTI oil trading at $81 remains volatile, US dollar gains

23 November 2010 23 November 2010

BonTrade

WTI oil futures open Tuesday’s trading session volatile and hovering around $81 a barrel as recent events in Europe send investors piling back into the US dollar, which is still seen by many as a safe haven currency.

Latest WTI Oil Price

US Light crude oil futures for January 2011 delivery was trading at $81.03 a barrel, 07.45 GMT today on the NYMEX after closing lower in trading yesterday.

Investors remain nervous about other indebted eurozone countries and investors are taking a second look at whether Ireland’s debt crisis could spread to other EU members.

Yesterday, the euro jumped as high as $1.3786 before falling to $1.3615 against the US dollar as relief about Ireland switched to fears that Portugal or Spain may soon need financial assistance.

Lighter Oil Trading Volumes

Oil trading volumes are also lighter than usual, ahead of the US Thanksgiving Day holiday this coming Thursday, when the US markets will be closed.

“It is a big holiday week in the US, so market volumes will be low, with many traders gone for most of the week. I don’t see much to be bullish about.” said Mike Sander at Sander Capital Advisors.