WTI oil trading over $83 amid euro debt concerns, dollar

WTI oil prices open Thursday’s trading session firm over the $83 mark amid continued debt concerns haunting euro countries, which sees the US dollar continuing to hold onto two month highs against the euro.

Latest WTI Oil Price

US Light crude oil futures for January 2011 delivery was trading at $83.72 a barrel, 07.30 GMT this morning on the NYMEX after closing yesterday’s session at $84.18. US markets are closed today due to the Thanksgiving weekend in America.

Euro Debt Concerns for Portugal and Spain

Portugal’s borrowing costs are rising sharply amid a major public sector strike and growing market fears the country could be next in line for a European bailout.

Spain’s interest rates are also up as investors worry that Portugal’s problems could affect its larger neighbour.

The interest rate on 10 year Portuguese bonds broke through the 7 percent barrier yesterday, while 10 year Spanish bonds rose to 5.08 percent at mid-morning from 4.91 percent at the start of trading.

These figures are a big concern for the two countries and if they too are in need of EU and IMF assistance, many analysts believe that there are not enough funds to cover loans.

Meanwhile, the eurozone situation is having a big effect on the currencies market. The euro was down against the US dollar again this morning, hovering close to a two month low as worries about the eurozone debt crisis continued.

Investors in the euro currency are shifting back into the US dollar, which to some extent is still seen as a safe haven currency at times like these.

And as we know, a higher US dollar is going to put downward pressure on both crude oil prices and other commodities.