Brent oil trading firm over $93, ICE Dollar Index supports

23 December 2010 23 December 2010

BonTrade

Brent oil prices open today’s trading session firm over $93 a barrel as the holiday break nears, the ICE Dollar Index remains at 80 levels, which if anything, will support short term prices in oil and other commodities.

Latest Brent Oil Price

In London, Brent crude oil futures for February 2011 delivery was trading at $93.72 a barrel, 07.45 GMT this morning on the ICE Futures Exchange.

Meanwhile, the ICE US Dollar Index, which tracks the US dollar against six other major world currencies was at 80.72.

ICE Dollar Index out of Steam?

The dollar has experienced a mixed performance against its primary currency rivals lately, however a break higher from 80 levels on the ICE Dollar Index seems difficult to achieve.

There is a close relation between the Dollar Index and oil prices, as oil and other commodities are traded in US dollars. A stronger dollar makes commodities more expensive for buyers using other currencies.