Brent oil trading over $86 on weaker ICE Dollar Index

29 November 2010 29 November 2010

BonTrade

Brent oil prices open Monday’s trading session higher and over $86 a barrel as the US dollar weakens in exchange markets, as seen by early morning falls in the ICE Dollar Index.

Latest Brent Oil Price

In London, Brent crude oil futures for January 2011 delivery was trading at $86.16 a barrel, 07.30 GMT this morning on the ICE Futures Exchange.

Meanwhile, the ICE Dollar Index, which tracks the value of the US dollar against six major world currencies fell to 80.433 this morning.

Oil Prices to Remain Bullish?

Many traders expect crude oil prices to continue an upward trajectory as sentiment remains bullish because of strong winter demand, a diesel shortage in China and better economic signals coming out of the US.

“We are maintaining a bullish view for now, with the oil complex possibly detaching further from the strong dollar while placing greater emphasis on increasing indications of favorable US economic guidance. Most funds close their books by the middle of November, so the liquidation of crude oil positions would’ve ended by now. It’s a good time to build fresh positions.” said Jim Ritterbusch at Ritterbusch and Associates.