Brent oil prices open today’s trading session back near $113 a barrel after dipping near $110 yesterday, mainly on a stronger US dollar which saw recent gains trimmed as concern about Europe’s deteriorating debt crisis eased temporarily.
Latest Brent Oil Price
In London, Brent crude oil futures for October 2011 delivery was trading at $112.87 a barrel, 06.00 GMT this morning on the ICE Futures Exchange. Brent closed yesterday’s trading session at $112.18.
Blow Up In Europe?
Traders remain wary about the modest oil rally as markets remained prone to swings in risk appetite, with European policy makers struggling to reassure investors Greece can stay afloat.
“I don’t think anybody would be putting any big positions given the global situation. You never know what is going to blow up in Europe next.” said Victor Say, an analyst at Informa Global Markets, Singapore.
“The European debt, especially the Greek situation, is not bound to go away so soon. That along with the slowing of the global economy, you will see some shrinking on demand, which will weigh on oil prices.” Say added.
US Dollar Gains Trimmed
The ICE US Dollar Index traded solidly higher Monday, only to dip back lower in trading this morning. US dollar bulls have gained good upside near term technical momentum recently, to suggest a price uptrend can now be sustained.
The Dollar Index, which tracks the US dollar against six major world currencies was trading at 77.217 after reaching 77.789 yesterday.
If the ICE US Dollar Index continues to trade sideways to higher, that would be a bearish underlying factor for both Brent and WTI oil prices.
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Brent oil price hangs near $113 as US dollar gains trimmed
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