Brent oil trading firm over $98, ICE Dollar Index weakens

14 January 2011 14 January 2011

BonTrade

Brent oil prices open Friday’s trading session firm over $98 a barrel as attention turns back to weakness of the US dollar, as seen by recent falls on the ICE US Dollar Index.

Latest Brent Oil Price

In London, Brent crude oil futures for February 2011 delivery was trading at $98.37 a barrel, 05.50 GMT this morning on the ICE Futures Exchange. The February Brent oil contract expires today.

The ICE US Dollar Index, which tracks the US dollar against six major world currenices fell for a third straight day to 79.40, over one percent lower in currency trading on Thursday. Weakness of the US dollar is adding fuel to higher oil prices.

$100 Brent Oil Price by Today’s Close?

Brent oil futures last traded above $100 a barrel on 1st October, 2008, the only year in which any front month oil futures benchmark has surpassed that level.

Oil traders tend to cover their positions as monthly oil contracts expire, hence if Brent can add around $1.50 today, the $100 mark is in sight.

Meanwhile, Libya’s top oil official on Thursday said oil prices at $100 a barrel would not harm the world economy and there is no need for OPEC to hold an emergency meeting or add supplies.