Brent oil price trading above $80 on weaker US dollar

ICE Brent oil price rose above $80 a barrel in trading on Monday in Asia, extending gains from Friday amid a weaker US dollar and signs the global economy may be improving. In London, Brent crude oil futures are up 48 cents at $80.37 on the ICE Futures Exchange.

The US dollar fell on Monday as last week’s above forecast US jobs data was seen boosting global economic recovery prospects, lifting investor demand for risk and higher yielding currencies.

“The euro could move higher if it breaks the $1.3720/1.3750 area, but for the moment I don’t see it has the momentum,” said Antje Praefcke, currency strategist at Commerzbank in Frankfurt.

Analysts said crude oil futures will likely maintain its bullish trading momentum this week, with further positive cues expected to support to the upside for oil prices, but they caution against any surprise weakness in the equities or strength in the US dollar, which could spark a big sell off from near two month highs.