WTI oil trading near $89, US Dollar Index opens lower

7 February 2011 7 February 2011

BonTrade

WTI oil futures open Monday’s trading session hovering near $89 a barrel as the US dollar lost some ground in early currency trading, as seen by movements on the ICE US Dollar Index.

Latest WTI Oil Price

US Light crude oil futures for March 2011 delivery was trading at $88.72 a barrel, 08.00 GMT this morning on the NYMEX.

Meanwhile the ICE US Dollar Index, which tracks the US dollar against six major world currencies, slipped back under 80 to 77.892. A weaker US dollar tends to add fuel to higher oil prices.

US Recovery, Egypt and Oil Prices

Analysts said that oil prices were also supported by optimism in a possible US recovery, with recent US economic data have pointed to a stronger growth momentum. The US is the world’s biggest oil consuming nation.

Investors were also watching fresh developments in Egypt, where protesters are demanding President Hosni Mubarak step down.

While Egypt is not a major crude oil producer, the country is home to the Suez Canal, which carries about 2.4 million barrels daily, roughly equal to Iraq’s total oil output. Traders are concerned about the wider ramifications of the events in Egypt on the oil rich but politically volatile Middle East.