WTI oil price firm over $77, looks to US dollar & markets

29 July 2010 29 July 2010

BonTrade

WTI oil prices are trading firm around the $77 a barrel mark on Thursday and could push higher as investors look to stock markets and the US dollar to guess future oil price direction.

US Light crude oil futures for September 2010 delivery were at $77.30, 08.00 GMT on the NYMEX after closing Wednesday’s trading session below $77.

The US dollar fell against the yen Wednesday after disappointing economic data grew concerns that any US recovery was losing steam. The US Federal Reserve’s latest report pointed to signs that any economic recovery in the US may be running out of steam.

The ICE Dollar Index, which tracks the US dollar against a trade weighted basket of currencies, was at 82.132 from 82.138.

“The crude oil market has shown that the US economy is not absorbing the supply, nor is the motivation there for refiners to process those oil supplies. The numbers in the US are not that good.” said Jonathan Barratt at Commodity Broking Services in Sydney.

Meanwhile, european stock markets and oil prices opened slightly higher this morning, as investors weigh up the competing influences of US data.