Light oil price trading up as US dollar takes a knock

1 April 2010 1 April 2010

BonTrade

WTI Light oil prices are trading up above $83 on Thursday in Asia as mixed reports and data sent oil futures to 2010 highs and the US dollar took a knock. US Light crude oil futures are currently trading around $83.35 a barrel Thursday on the NYMEX.

“We had action on the currency market,” said Bart Melek of BMO Capital Markets, adding that a weakened US dollar sent oil prices higher.

“After the big increase last night, we can see some signs of profit-taking,” said Ken Hasegawa, an energy trading manager with brokerage Newedge Japan. “I think the market volume will be very thin because of the (Easter) holidays and because of that prices are likely to fluctuate.”

Analysts said yesterday’s gains were also buoyed by an International Energy Forum meeting that pledged for greater cooperation and more transparency in tackling oil price volatility, seen as damaging to economic recovery.