WTI oil trading up near $83 on Fed’s dollar printing plan

11 October 2010 11 October 2010

BonTrade

WTI oil prices open trading near the $83 a barrel mark a may move higher this week as the Fed’s dollar printing plan could move into a higher gear at it’s next meeting.

US Light crude oil futures for November 2010 delivery was trading at $82.94 a barrel, 09.00 GMT this morning on the NYMEX.

“Once investors started seeing the jobs data in terms of quantitative easing rather than as a sign that the economy has really run out of all its forward thrust, oil prices advanced. The US economy is so anemic, investors are taking heart that the Fed will help.” Cameron Hanover said in a report.

Meanwhile, Weak US jobs data for September last week strengthened the case for further money printing plans to boost the struggling US economy, as world financial leaders over the weekend sought to defuse mounting tensions over currency markets.

Expectations that the US Fed will pump more money into the economy before the end of 2010 are adding downward pressure on the already battered US dollar, which makes oil prices cheaper for holders of other currencies.

Oil Price Long Positions Advance

Money managers net long crude oil positions on the NYMEX advanced to more than 165,000 in the week ending October 5th, the highest since April 2010, the Commodity Futures Trading Commission reported last Friday, from around 107,000 a week earlier.