WTI oil price trading near $91 on weaker US dollar

WTI oil prices open Tuesday’s trading session back near the $91 mark as a weaker US dollar is helping to support oil prices, making commodities such as oil futures cheaper for investors to buy.

Latest WTI Oil Price

US Light crude oil futures for February 2011 delivery was trading at $90.99 a barrel, 07.00 GMT this morning on the NYMEX.

Meanwhile, the ICE US Dollar Index, which tracks the US dollar against six major world currencies was lower at 80.24. A weaker US dollar tends to support dollar denominated commodities such as oil futures.

Speculators also have piled into the oil market in recent days, with hedge fund managers, raising their net long position in WTI oil contracts for the third week in December, according to data released by the CFTC.

Oil traders will also focus on US crude oil inventory data due later this week, as US crude oil stockpiles are expected to fall again by around 2.8 million barrels.

$100 Oil Prices in 2011?

“I think a lot of people are expecting prices to turn higher towards $100 a barrel next year.” said David Cohen, director of Asian Economic Forecasting at Action Economics.