WTI oil price ends week near $82 on weak Dollar Index

2 October 2010 2 October 2010

BonTrade

WTI oil prices end the week higher, nearing $82 as a weaker Dollar Index helped oil futures and other commodities including gold to maintain an upward momentum.

US Light crude oil futures for November 2010 delivery ended the week at $81.58 a barrel on the NYMEX, over $5 higher than last week’s closing price of $76.49 a barrel.

Weaker Dollar Index Helps Move Oil Futures Higher

The ICE Dollar Index, which tracks the US dollar against six major currencies was at 78.137 from 78.762, a level last seen in January 2010. A weaker dollar is helping both WTI and Brent oil contracts to move higher as oil is priced in US dollars.

The dollar has hit it’s weakest point against the euro since March 2010 on the view that the currency will face more losses if the US Fed continues with it’s money printing ideas to further support the weak US economy. The euro has been a major beneficiary of the US dollar’s recent sell off.

Gold Prices At Historical Highs

Meanwhile, gold prices climbed past $1,320 an ounce to a new all time high yesterday after the latest set of economic data was released in the US.