Brent oil trading back at $120 amid stronger US dollar

Brent oil is trading back near the $120 a barrel mark in today’s session as stronger US dollar fails to stop oil prices from pushing higher as investors buy back into crude oil on supply concerns.

Latest Brent Oil Price

In London, Brent crude oil futures for July 2011 delivery was trading at $119.85 a barrel, 05.55 GMT this morning on the ICE Futures Exchange.

Meanwhile, the ICE US Dollar Index, which tracks the US dollar against six major world currencies was higher, at 74.26, from 73.93 yesterday. The euro fell for a second day against the US dollar as traders closed out earlier bets on future ECB rate increases.

Brent Oil Price Premium

Brent oil prices are currently trading at a premium of $17.75 a barrel to US oil futures as of yesterday’s closing prices. The difference between front month contracts in London and New York reached a record $19.54 on 21st February 2011.

Both Brent and WTI oil prices have traded the last four sessions higher, mainly on oil supply concerns as North Africa and Middle Eastern countries continue to seeing unrest which is affecting their oil output levels at a time when global oil demand rising.

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Brent oil trading back at $120 amid stronger US dollar