WTI oil price hangs near $108, US dollar remains weak

WTI oil prices open Friday’s trading session hovering near $108 a barrel as the US dollar remains under pressure, as seen by weakness in the ICE US Dollar Index.

Latest WTI Oil Price

US Light crude oil futures for May 2011 delivery was trading at $108.26 a barrel, 07.15 GMT this morning in electronic trading on the NYMEX. The US crude oil contract finished up over one percent in trading yesterday.

ICE US Dollar Index

The ICE US Dollar Index, which tracks the US dollar against six major world currencies is currently at 74.96. The weaker US dollar makes commodities including oil futures less expensive for traders buying in other currencies.

The US dollar has followed its anticipated bearish trajectory in recent months, rivalling its 16 month lows on loose US monetary policy and many analysts forecast that the dollar will weaken further in the coming months.

“The risk is the US dollar may have to become notably weaker first to help, or possibly even force the reduction in US imbalances.” said Thomas Stolper of Goldman Sachs.

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WTI oil price hangs near $108, US dollar remains weak

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