WTI oil trading near $87, boosted by a weaker US dollar

WTI oil futures open Tuesday’s trading session near $87 a barrel as oil prices receive a boost from a weaker US dollar, however yesterday’s near 3 percent gain could fall back as economic news continues to affect commodity prices.

Latest WTI Oil Price

US Light crude oil futures for September 2011 delivery was trading at $87.22 a barrel, 07.00 GMT this morning in electronic trading on the NYMEX.

US Dollar Index

The ICE US Dollar Index, which tracks the US dollar against six major world currencies fell to 74.145 after closing yesterday’s session at 73.929. A weaker US dollar makes dollar priced crude oil cheaper for holders of stronger currencies, helping to stimulate buying.

Oil Market to Remain Volatile

“I expect that the market will continue to be rocky and volatile because there’s still concern about a potential return of the global economy to a recession.” according to Victor Shum, an analyst with Purvin & Gertz energy consultants, who expects the oil market to remain volatile.

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WTI oil trading near $87, boosted by a weaker US dollar