WTI oil price falls under $89, US Dollar Index makes gains

WTI oil futures end the week back under $89 a barrel as the latest US employment data, a stronger US dollar and the ongoing Egypt situation had investors taking profits.

WTI Oil Futures – Closing Price

US Light crude oil futures for March 2011 delivery ended the week at $88.97 a barrel on the NYMEX, $0.33 a barrel lower than last week’s closing price of $89.30.

Meanwhile, the ICE US Dollar Index, which tracks the US dollar against six major world currencies, rallied 0.4 percent to close back at 78.14.

Stronger US Dollar – Oil Prices

A stronger US dollar weighed on oil futures, after disappointment over the monthly US employment report gave way to guarded optimism that US labour markets were rebounding, albeit slowly. American employers added only 36,000 more jobs in January 2011, way below the consensus forecast of 145,000.

A rising US dollar typically sends oil prices lower by making crude futures more expensive for buyers in other currencies.