WTI oil price nears $85 amid mixed signals in Europe

29 November 2010 29 November 2010

BonTrade

WTI oil prices open the week’s trading session higher, near the $85 mark as EU financial ministers agreed the terms for an Irish bailout loan, sending the US dollar lower, however other European countries including Portugal and Spain remain in the firing line.

Latest WTI Oil Price

US Light crude oil futures for January 2011 delivery was trading at $84.82 a barrel, 07.45 GMT on the NYMEX after opening today’s session under $84.

Irish Bailout Agreed, Whos Next?

Crude oil futures rose as traders welcomed news of an agreement to bailout Ireland from its financial crisis, although gains were capped as the euro floundered and regional stock markets were mixed.

EU officials are trying to reassure investors that Portugal, Spain and Belgium will not need to ask for financial help, but market nerves will continue this week, affecting not only stock markets, but also currency markets, commodity prices and crude oil futures.

A recent German press report said the European Central Bank and many eurozone countries were putting pressure on Portugal to apply for a bailout to help prevent the debt crisis from hurting other European countries.

WTI Oil Price Resistance – $85?

Although oil prices will face stiff resistance at $85 a barrel, the market could test and break past the psychologically important level as the week progresses.

Meanwhile, investors and traders will also be looking to this week’s key US jobs report for evidence to see if the American economy is improving.