Oil prices trading down two percent on stronger US dollar

Crude oil prices are trading around two percent down on Tuesday as the US dollar made gains and investors mulled whether weaker US crude oil demand justified a fifteen percent rally in oil prices over the last three weeks. By early afternoon in Europe, US Light crude oil futures for April delivery was down at $78.62 a barrel in electronic trading on the NYMEX, while in In London, Brent crude oil futures are trading around $77.42 on the ICE Futures Exchange. The ICE Dollar Index, which tracks the US dollar against a trade weighted basket of currencies, was at 80.705 from 80.552. The dollar extended gains versus the euro on Tuesday after data showing US home prices dipped unexpectedly in December added to market jitters ahead of testimony from the US Federal Reserve chief later this week. The market will be looking for any Bernanke comments on the Fed’s decision late last week to raise its discount rate, the rate charged to banks for emergency loans, which was lowered after the collapse of Lehman Brothers. “Oil prices have suffered from some profit taking after the recent bullish trading run of the past week,” said London based analysts at Panmure Gordon. Light oil prices trading around $74, eyes on US Dollar Oil prices & commodities trading higher, US dollar slides Oil prices trading higher amid stronger US Dollar, Europe Crude oil prices trading higher, eyes on US Dollar Index Oil prices trading lower after loosing two percent Monday Oil prices trading steady, awaits US crude inventory data The Weekly Oil Futures Wrap at Live Oil Prices Oil prices trading steady after Thursday loss, eyes on dollar Oil prices trading down two percent on latest US jobs data Brent oil price trading near $80 mark on weaker dollar Crude oil ends weeks trading higher, back near $80 Light oil trading steady around $72, eyes on US dollar Crude oil prices trading higher amid a stronger US dollar Brent oil price hovers under $77 on higher dollar, markets Oil prices trading steady as US dollar makes gains Brent oil price trading up on latest positive US GDP data Light oil price trading back near $80 on weaker US dollar Brent oil price trading under $76 on Greece Worries Crude oil prices trading steady on US oil stocks data Light oil trading up on heavy buying ahead of EIA report

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Oil prices trading down two percent on stronger US dollar