Brent oil price ends week at $84 on Ireland debt, US dollar

Brent oil prices end a choppy week just over $84 a barrel as markets remain on edge over Ireland’s debt concerns and the US dollar fails to make any further ground against the euro.

Brent Oil Futures – Closing Price

Brent crude oil futures for January 2011 delivery ended the week at $84.33 on the ICE Futures Exchange, $1.77 lower than last week’s close of $86.10 a barrel.

Bernanke Comments not Helping the US Dollar

US Fed Chairman Ben Bernanke, speaking at a ECB conference in Frankfurt defended the Fed’s easy money policies against criticism they are intended to cheapen the US dollar, arguing that China and other countries are causing problems for themselves and the rest of the world by preventing their currencies from strengthening.

“We would sell the dollar off the Bernanke speech. It is hard enough to stop a central bank from weakening its currency when it is cutting rates, but when it is willing to print money to do so, and feels that other countries are unjustifiably intervening, it looks very much as if they are determined to get a weaker currency.” said Steven Englander of Citigroup in New York.

Ireland Rescue Not The Last

A new plan designed to help Ireland cope with its battered banks will be unveiled next week, EU sources said yesterday, but experts warned a rescue may not be enough to prevent contagion to other EU members including Portugal and Spain. However, the euro rose against the US dollar on anticipation of a new financial aid package for Ireland, lending support to crude oil prices.

Irish debt concerns have seen both Brent and WTI oil prices sell off further this week, however price drops have been cushioned by a weak US dollar, as seen by lack of firm movements on the ICE Dollar Index.

ICE Dollar Index Closes Lower

The ICE Dollar Index, which tracks the US dollar against a trade weighted basket of six major world currencies, closed at 78.504 from 78.635.

A weaker dollar tends to lift oil prices and other commodities as oil futures are cheaper for investors to buy using other currencies.