Brent oil futures end the week’s trading session back down at $112 a barrel as the euro’s foreign exchange rate took a big hit with investors piling back into the US dollar, hence weakening oil prices and weighing on other commodities.
Brent Oil Futures – Closing Price
ICE Brent crude oil futures for October 2011 delivery ended the week’s trading session at $112.56 a barrel on the ICE Futures Exchange, $0.09 lower than last week’s closing price of $112.65 a barrel.
Weaker Euro Exchange Rate
The euro had its biggest loss against the US dollar in more than a year on speculation the European Central Bank will cut interest rates amid record Greek bond yields and the region’s deepening debt crisis.
The euro fell 3.9 percent this week to $1.3656, from $1.4205 on 2nd September, the biggest weekly drop since 12th July, 2010.
“The momentum on the weaker euro trend is set to accelerate. The solutions coming out of Europe are not working and not helping the periphery or the bond markets to stabilise.” according to Ken Dickson, investment director of currencies at Standard Life Investments in Edinburgh.
Gold Prices and the US Dollar
Meanwhile, gold prices also slid lower on Friday as the US dollar advanced, however gold clawed back much of its loss by mid afternoon as the resignation of European Central Bank policymaker Juergen Stark reignited aversion to riskier assets.
Originally posted here:
Brent oil futures end week back at $112 as euro rate weakens
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