WTI oil price heads back to $99 a barrel, eyes on US dollar Index

US WTI oil futures open Monday’s trading session nearly 2 percent higher, near $99 a barrel as stock markets bounced, however the strength of the US dollar will remain one of the main drivers of oil prices heading into 2012.

Latest WTI Oil Price

US Light crude oil futures for December 2012 delivery was trading at $98.71 a barrel, 07.45 GMT this morning in electronic trading on the NYMEX.

Meanwhile, the ICE US Dollar Index, which tracks the US dollar against six major world currencies was at 79.535, from Friday’s close of 79.831. Recent strength in the dollar has helped cap oil price gains.

Dollar Index Over 80?

The US dollar weakened against most of it’s major counterparts this morning in early trading as gains in Asian stocks and speculation European leaders are taking steps to stem the region’s debt crisis curbed demand for safer assets.

As the debt situation in Europe spills over, the US dollar has seen gains with investors piling back into the currency, seen as many as a safe haven in times of uncertainty. The US Dollar Index may well pass the 80 mark this week.

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WTI oil price heads back to $99 a barrel, eyes on US dollar Index