WTI oil price ends week at $87 mainly on stronger US dollar

WTI oil prices end Friday’s trading session back at $87 a barrel as the US dollar soared against the euro over the latest European debt concerns surrounding the ECB’s bond buying program promt an executive board member to resign.

WTI Oil Futures – Closing Price

US Light crude oil futures for October 2011 delivery ended the week’s trading session at $87.19 a barrel on the NYMEX, closing $0.47 higher than last weeks Friday close of $86.72 a barrel.

Stronger US Dollar

The euro fell to its lowest level in more than six months against the US dollar on Friday. The ICE US Dollar Index, which tracks the US dollar against six major world currencies was trading at 77.300 late on Friday. A stronger US dollar makes oil prices more expensive for buyers using other currencies.

ECB Executive Resigns

The resignation of Germany’s top representative to the European Central Bank on Friday, over a policy dispute, fueled new doubts about the potential for resolving the eurozone economic crisis. The ECB earlier in the week scaled back its economic growth forecasts for the region.

US Jobs Plan

Oil prices fell further yesterday as traders and investors gave a lukewarm response to President Obama’s new plan to fuel US jobs.

“The reaction to Obama’s job creation plan has so far been mild. It should sooner or later inject some risk appetite into the markets.” according to Filip Petersson, an analyst at SEB Commodity Research.

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WTI oil price ends week at $87 mainly on stronger US dollar