Brent oil price trading near $81, awaits US Fed meeting

9 August 2010 9 August 2010

BonTrade

Brent oil prices open the week’s trading session higher, climbing back near the $81 mark as Asian stock markets get a boost and the US dollar weakens ahead of a US Fed meeting tomorrow.

In London, Brent crude oil futures for September 2010 delivery was at $80.70, 07.15 GMT on the ICE Futures Exchange.

Oil prices have increased as a weak US dollar prompted traders to buy back previously sold contracts.

With no US data of being reported today the market will focus on tomorrow’s Fed Open Market Committee meeting and how the market perceives the outcome of this meeting will dominate sentiment this week. Federal Reserve are considering further policy easing at a meeting this week.

“Clearly, now everybody is looking for the Fed to do something.” said Paul Ashworth of Capital Economics.

Oil prices may receive a boost this week if the US dollar takes another knock, which is looking more likely as the US dollar today is already down against the yen, reaching new 15 year lows against the currency.