US WTI oil price heads back over $95 as dollar falls against major currencies

US WTI Light crude oil opens Friday’s trading session back at $95 a barrel as oil prices gained in line with a falling US dollar which lost ground against all major currencies yesterday including sterling, the yen and the euro.

Latest WTI Oil Price

US Light crude oil futures for July 2013 delivery was trading at $94.94 a barrel, 08:08 GMT this morning in electronic trading on the NYMEX.

US Dollar Falls Against Majors

The US Dollar Index fell against most major currencies in a broad sell-off yesterday afternoon, nosediving 3 percent against the Japanese yen alone as currency traders bailed out and cut their long positions on the dollar.

In early trading today the dollar was on the back foot in Asia after suffering its biggest one day decline in three years against the Japanese yen as market players unwound their bullish bets on the greenback ahead of a closely watched US jobs report.

US Jobs Data

Both Brent and US WTI oil prices pushed higher Thursday in anticipation of a positive jobs report which is due out on Friday, said Jay Levine, technical analyst with Enerjay LLC. “All of its fortunes are tied to the report. Whether it can stay up is another question. I’m not that optimistic about it because pessimism enters the market all too easily.” he said.

A strong reading from Friday’s jobs report, which uses the government’s own employment data, could boost energy-market sentiment, but the direction of oil in the wake of the jobs report will depend on the dollar’s reaction, said Stephen Schork with the Schork Group. “It all comes down to what the dollar does. You’re going to get a lot of volatility tomorrow.” he said.

The Labor Department’s report is expected to be released at 12:30 GMT today.

US Oil Inventories

Meanwhile, falling crude inventories remained positive for oil prices this week. According to the US EIA, American crude oil stockpiles tumbled 6.3 million barrels to 391.3 million barrels in the week ended May 31, compared with an average survey estimate calling for a 400,000 barrel decline.

The American Petroleum Institute, an industry group, reported a 7.8 million-barrel draw in its weekly report released on Tuesday.

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US WTI oil price heads back over $95 as dollar falls against major currencies