Brent crude oil futures open today’s trading session at $124 a barrel as a weaker US dollar sees commodities including oil prices firm higher, as seen by a falling ICE US Dollar Index, which tracks the dollar against other currencies.
Latest Brent Oil Price
In London, Brent crude oil futures for June 2011 delivery was trading at $124.17 a barrel, 05.55 GMT this morning on the ICE Futures Exchange after closing yesterday’s session at $123.87.
US Dollar Falling – Oil Prices Climbing
The US dollar fell lower against most major currencies as the ICE Dollar Index hit 73.744. The Dollar Index tracks the US greenback against six major world currencies.
Many analysts forecast that the dollar is going to see more weakness in the coming months as investors bet the Fed’s monetary policy meeting, which ends today, would keep an easy policy.
“Traders are betting that the Fed will keep policy rates low, and that will weaken the dollar. Hopes for a global recovery are also supporting Asian currencies.” said Han Sung Min, a currency dealer at Busan Bank in Seoul.
Investors Remain Cautious
“Investors are being very cautious ahead of the Fed meeting and prices are drawing support from a weak dollar. Oil prices will continue to trade in this range until the outcome of the Fed meeting is known at least.” said Serene Lim, an analyst at ANZ.
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Brent crude oil trading at $124 on weaker ICE Dollar Index
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