Brent oil price hovers at $98, eyes on ICE Dollar Index

17 January 2011 17 January 2011

BonTrade

Brent oil futures open today’s trading session hovering at $98 a barrel as the US dollar will remain an important factor to watch (ICE Dollar Index) if oil prices are to rise or fall in the short term.

Latest Brent Oil Price

In London, Brent crude oil futures for March 2011 delivery was trading at $98.28 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 major world currencies was higher at 79.44 in early currency market trading.

The ICE US Dollar Index fell around 2.4 percent last week and has been moving in the range of 78.75 and 81.50 since late November 2010. It maybe the case that the US dollar claws back some of it’s lost ground today.

Foreign exchange traders anticipate limited activity today with the US stock markets closed for the annual Martin Luther King holiday.

A higher US dollar makes commodities, including Brent and WTI oil futures more expensive to buy for holders of other major world currencies.