Brent oil price hovers at $83 on stronger US dollar

23 November 2010 23 November 2010

BonTrade

Brent oil futures are trading around the $83 mark early this morning as investors flee the euro currency and the US dollar is once again the main beneficiary, sending oil prices and other commodities lower.

Latest Brent Oil Price

In London, Brent crude oil futures for January 2011 delivery was at $83.38 a barrel, 07.30 GMT this morning on the ICE Futures Exchange.

Meanwhile, the ICE Dollar Index, which tracks the US dollar against a trade weighted basket of six major world currencies increased to 0.15% to 78.80 and touched a high of 78.94.

European Markets On Edge

Oil prices have declined mainly by the EU and IMF’s decision to bailout Ireland and investors are concerned that the bailout would result in a downgrade to Ireland’s credit rating.

European markets remain on edge this morning as the spotlight may soon shine on Portugal’s own debt concerns, and that it may too require a similar bailout from the EU.

“The problems that pushed Ireland to ask for help could be part of a larger contagion that could touch a number of EU countries. This concern manifested itself as a stronger dollar, which led to selling in oil futures.” commented Peter Beutel of Cameron Hanover.