WTI oil trading nearer $83, eyes on Ireland debt talks

19 November 2010 19 November 2010

BonTrade

WTI oil futures are trading back into the $83 a barrel range early this morning as debt talks in Ireland prompt investors to buy back into the euro and the US dollar lost out, boosting the appeal of oil as an alternative investment.

Latest WTI Oil Price

US Light crude oil futures for January 2011 delivery was trading at $82.69 a barrel, 07.45 GMT on the NYMEX. The December WTI oil futures contract expires today.

Meanwhile, the US dollar declined for a third day against the euro to trade at $1.3671, after losing 0.8 percent yesterday.

WTI oil prices may trade higher next week as speculation that Ireland will accept an ECB and IMF debt bailout grows.

Yesterday, the Irish Central Bank Governor Patrick Honohan commented that he expects the country will ask the EU and the IMF for tens of billions of euros to rescue its banks.

Oil Price Forecast

A recent Bloomberg news survey showed that 47 percent of 38 analysts and traders asked, forecast that crude oil prices will climb between today and 26th November, with 26 percent forecasting that oil prices will fall and 27 percent forecasting that there would be little change in oil prices next week.