WTI oil futures ends week on bullish note, nearing $89

18 December 2010 18 December 2010

BonTrade

WTI oil futures end Friday’s trading session closer to $89 a barrel as signs of economic improvement in the US helped boost the case for higher oil prices, while the US dollar also gained.

WTI Oil Futures – Closing Price

US Light oil futures for February 2011 delivery closed the week at $88.58 a barrel on the NYMEX, $0.79 higher than the previous week’s closing price of $87.79 a barrel.

The US economy is picking up speed and may grow by 3 percent to 3.5 percent in 2011, former Federal Reserve Chairman Alan Greenspan said. It was reported that the US economy apparently grew at annual pace of 2.5 percent in the third quarter of 2010.

US Dollar Link Slowly Eroding

WTI’s move higher Friday bucked the strengthening US dollar, which rose against the euro after Moody’s downgraded Ireland’s debt rating. A stronger US dollar usually pushes crude oil prices lower, as the commodity becomes more expensive in other currencies, but analysts said the strength of that link has eroded recently.

Meanwhile, uncertainty persisted over the outcome of new rules from the US CFTC (Commodity Futures Trading Commission). The regulator said Thursday it needed more time to weigh proposed rules that would curb speculative trading on commodities such as crude oil, metals and other raw materials.