WTI oil prices remain bullish amid stronger US dollar

11 December 2010 11 December 2010

BonTrade

WTI oil prices close Friday’s trading session near the $88 mark and remain bullish amid a stronger US dollar, as seen by slight gains in the ICE Dollar Index.

WTI Oil Futures – Closing Price

US Light oil futures for January 2011 delivery closed the week at $87.79 a barrel on the NYMEX, $1.65 lower than the previous week’s closing price of $89.44 a barrel.

Meanwhile, the ICE US Dollar Index, which tracks US dollar strength against six other major world currencies ended Friday at 80.107. The Index has risen every day this week in it’s longest winning streak since 11th November.

Banks Buying US Dollars

Traders said some firms are buying the US dollar for fund repatriation at the end of 2010, and demand for the US dollar will likely remain strong until the end of December.

“A major UK bank and a Swiss bank bought the US unit on commercial demand, as many firms need US dollars to dress up their year end balance sheets.” said a senior trader at a Chinese bank.