WTI oil price ends week trading at $108, a new 2011 high

2 April 2011 2 April 2011

BonTrade

US WTI Light crude oil futures hit a new 2011 high late in trading on Friday, ending the week’s session over $108 a barrel and pushed higher on strong US jobs growth in March and weakness in the US dollar.

WTI Oil Futures – Closing Price

US Light crude oil futures for April 2011 delivery ended the week’s trading session at $108.16 a barrel on the NYMEX, $2.76 a barrel higher than last week’s closing price of $105.40. WTI oil futures were last at this price range on 25th September 2008.

US Jobs and Dollar Boost Oil Prices

The US Labour Dept said on Friday that US non farm payrolls rose by 216,000 compared with estimates of a rise of only 195,000, while the US dollar lost some of it’s edge in currency market trading.

The ICE US Dollar Index, which tracks the US dollar against six major world currencies is down sharply in 2011 and is close to 2007 levels. The index hit an intraday low of 75.66 on Friday.

A weaker US dollar generaly makes crude oil cheaper for investors using foreign currencies.

WTI Running Towards $110?

Oil traders said that recent chart patterns suggest WTI NYMEX crude oil futures can easily make a run for $110 a barrel and beyond.

The rally fed upon itself as oil prices responded to US dollar weakness. Rich Ilczyszyn, a broker at Lind Waldock said, “A lot of players are looking at this market and saying ‘Do I really want to go home short oil?”