Brent oil price hits $87 mark amid stronger US dollar

30 November 2010 30 November 2010

BonTrade

Brent oil prices have started the week on positive ground hitting $87 in late trading on Monday amid a stronger US dollar, as seen by gains on the ICE Dollar Index.

Latest Brent Oil Price

In London, Brent crude oil futures for January 2011 delivery was trading at $87.04 a barrel, 06.50 GMT on the ICE Futures Exchange.

Meanwhile, the ICE Dollar Index which tracks the US dollar against six major world currencies was at 80.902 and climbing on debt concerns in Europe.

Oil prices held onto early gains sparked by Europe’s 85 billion euro rescue package for Ireland and the creation by the EU of a blueprint for any future bailouts after 2013.

The package, designed to ease fears about Europe’s willingness to step in with aid, initially provided a boost for stock markets as well as the euro. But those markets have retreated sharply as fears grow that the contagion afflicting Ireland could infect Portugal or other European nations, sending investors into traditional havens, such as the US dollar.

Oil Futures Becoming a Safe Haven?

“Oil is becoming a safe haven. There was a time when oil prices reacted to what the euro was doing. Now, traders seem to be turning to oil when they can’t turn to the euro. That’s new.” Cameron Hanover said in a report.