WTI crude oil trading higher, eyes on US data and dollar

16 August 2010 16 August 2010

BonTrade

WTI crude oil futures open higher in Asia trading today, near the $76 mark as the US dollar looses some strength and data to be released later this week may show that US manufacturing has expanded.

US Light crude oil futures for September 2010 delivery was trading at $75.80 a barrel, 08.15 GMT on the NYMEX.

US factory production and housing starts probably gained in July, economists said before the offical report is released later this week.

In currency markets, the US dollar fell to $1.2805 per Euro after reaching $1.2734 earlier today, after touching the highest level in nearly four weeks.

“Oil traders will likely trade upon the negative correlation with the dollar, which seems to be back in vogue.” said Stephen Schork of Schork Group.

Meanwhile, Goldman Sachs commented that commodities demand for crude oil, gold, copper, zinc and platinum from emerging markets will help to support prices towards the end of 2010.