WTI oil futures close week near $113, US Dollar Index falls

9 April 2011 9 April 2011

BonTrade

WTI oil futures end a bullish week near $113 a barrel and oil prices saw a boost off the back of a falling US dollar, as seen by a big drop on the ICE US Dollar Index, which tracks the dollar against other major world currencies.

WTI Oil Futures – Closing Price

US Light crude oil futures for May 2011 delivery ended the week’s trading session at $112.79 a barrel on the NYMEX, $4.63 a barrel higher than last week’s closing price of $108.16.

ICE Dollar Index Under 75

The ICE US Dollar Index, which tracks the US dollar against six major world currencies was down 0.95 percent to 74.86, its lowest level since November 2009.

“The dollar’s been on decline pretty precipitously for the past several months. They’re in a tightening mode and we’re not, and we’re not going to be for a while.” said John Kilduff, founding partner of hedge fund Again Capital, New York.

“The US budget impasse and the European Central Bank’s rate hike have meant the dollar dropping to the lowest level since 2009. This is undoubtedly a very important ingredient for the rally we have seen.” said a senior manager at Saxo Bank.

A weaker US dollar tends to lift commodities, including oil prices higher as they become less expensive to buy for investors using foreign currencies.