WTI crude oil price nosedives under $98 in early trading

WTI crude oil prices open Monday’s trading session nosediving over $2 lower and under $98 a barrel as a stronger US dollar helps cap oil price gains, as the euro comes under selling pressure on Greece debt concerns.

Latest WTI Oil Price

US Light crude oil futures for July 2011 delivery was trading at $97.76 a barrel, 08.25 GMT this morning in electronic trading on the NYMEX.

US Dollar Driving Oil Prices

“The dollar is definitely the driving factor as the market is looking for a new direction following the sharp correction earlier this month.” said David Cohen, director of Asian Economic Forecasting at Action Economics in Singapore.

Greece Debt Rating Nears Junk

On Friday, Fitch Ratings cut Greece’s debt ratings by three notches, pushing the country deeper into junk in a sign that the Greece’s problems were escalating rapidly and denting the euro currency.

The ICE US Dollar Index, which measures the US dollar against six major world currenices as at 76.14, a new seven week high, making US dollar denominated crude oil futures more expensive for consumers using other currencies.

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WTI crude oil price nosedives under $98 in early trading