Brent oil price trades over $79 as the US dollar weakens

21 September 2010 21 September 2010

BonTrade

Brent crude oil prices are trading over the $79 mark on Tuesday as the US dollar weakens, boosting oil futures and other commodities including gold which is mantaining it’s all time trading highs.

In London, Brent crude oil futures for November 2010 delivery was trading at $79.13, 07.45 GMT on the ICE Futures Exchange, while the ICE Dollar Index fell 0.2 percent to 81.14, heading towards a five week low of 80.865 hit last week.

Black Gold or Just Gold?

Meanwhile, world gold prices have hit a new historic high, with one ounce trading for $1283.00 on the London Metal Exchange. The growing demand for gold follows reports that the US Fed plans changes to stabilise the financial markets and that one of the stabilisation measures provides for the issue of money unbacked by assets. Thats’ right, unbacked by any assets.

Investors now see a further fall in the US dollar, which has sent gold and both Brent and WTI oil prices higher.

Brent oil futures will no doubt start to move higher as the US dollar weakens but the question is how much higher and is the black gold looking to move over the $87 mark hit earlier this year?