WTI crude oil trading back over $100, eyes on US dollar

WTI crude oil futures open Friday’s trading session back over $100 a barrel as currency markets continue to dictate short term oil price direction, lead by movements in the US dollar against other major currencies.

Latest WTI Oil Price

US Light crude oil futures for July 2011 delivery was trading at $100.38 a barrel, 06.10 GMT this morning in electronic trading on the NYMEX.

Meanwhile, the ICE US Dollar Index was little changed after a 0.5 percent drop yesterday. The measure, which tracks the US dollar against six major world currencies fell as much as 0.2 percent to the lowest level since 6th May.

“It’s pretty clear that the US economy is seeing that lack of momentum spill over into the second quarter. The US dollar is going to remain under downward pressure because of this overhang of the debt situation.” said Richard Grace, chief currency strategist at Commonwealth Bank of Australia.

“The weakness in data and higher oil inventories should have been a night off for oil, but oil prices went up this morning possibly due to the weakness in the US dollar.” said Ben Le Brun, a Sydney based markets analyst at CMC Markets.

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WTI crude oil trading back over $100, eyes on US dollar