Brent oil prices open today’s trading session lower, near $116 a barrel as the US dollar makes gains, as seen by upward movements on the ICE Dollar Index, which may see the US dollar climb higher still this week.
Latest Brent Oil Price
In London, Brent crude oil futures for August 2011 delivery was trading at $116.77 a barrel, 09.45 GMT this morning on the ICE Futures Exchange.
ICE US Dollar Index
Meanwhile, the ICE US Dollar Index, which tracks the US dollar against six major world currencies was trading back at 75.965, clearly showing some strength as the euro debt situation continues to play out.
Oil prices and other commodities fall as the US dollar gains, as oil futures are priced in US dollars, making them more expensive for buyers using other currencies when the dollar is stronger.
Some anaylsts are betting on a big move higher for the US Dollar Index. The index has a major resistance at the 76 mark, however if this level is breached, the Dollar Index has a potential to touch 78 in the immediate term, which would have oil prices tumbling lower again.
Read more here:
Brent oil futures trading at $116 on higher US Dollar Index
Leave a Reply
You must be logged in to post a comment.