WTI oil price hangs near $74 amid higher Dollar Index

WTI oil prices are trading firm near the $74 mark on Wednesday amid falling global stock markets and a higher US dollar, as shown by pointers in the US Dollar Index.

US Light crude oil futures for October 2010 delivery were trading firm at $73.80 a barrel, 09.00 GMT on the NYMEX after closing higher in trading yesterday.

The ICE Dollar Index, which tracks the dollar against a trade weighted basket of currencies, was at 82.815 from 82.010. The Dollar Index was up nearly 1%, indicating a broad advance for the US dollar.

Tough Times For the US Dollar

The US dollar declined against the yen but rose against the euro yesterday as concerns about the European banking system and signs of sluggish growth sent investors scurrying to the perceived safety of the yen and Swiss franc.

In the rush to safety, the US dollar dropped to a fresh 15 year low against the yen and the euro hit its lowest level ever versus the Swiss franc at CHF1.2812.

This could start to become tough times for the US dollar and could boost commodities including oil prices. Normally, any advance in the US dollar sends oil prices lower, however from recent patterns in the ICE Dollar Index, oil prices are trading firm or even trading higher.