Brent oil price holds over $94 on weaker ICE Dollar Index

30 December 2010 30 December 2010

BonTrade

Brent oil futures are holding over $94 a barrel in the last trading session of 2010, mainly on a weaker ICE US Dollar Index which has slipped back under the 80 mark and oil prices maybe poised for a bullish start to 2011.

Latest Brent Oil Price

In London, Brent crude oil futures for February 2011 delivery was trading at $94.26 a barrel, 07.20 GMT this morning on the ICE Futures Exchange.

Meanwhile, the ICE US Dollar Index, which tracks the US dollar against six major world currencies, was at 79.685 from 79.774.

Oil Market Seems Bullish

“It’s choppy, low volume during this holiday week, but the market seems resilient and it looks like it wants to trade higher.” said Tony Rosado, broker with GA Global Markets.

“We’re seeing light long liquidation before the end of the year, a day after crude oil showed amazing resilience, switching courses in the middle of the stream.” said Peter Beutel, president of energy consulting firm Cameron Hanover.

“The oil market continues to alternate small gains with small declines, as prices idle quietly on light between-holiday volume.” said Timothy Evans, energy analyst at Citi Futures Perspective.

US Dollars & Oil Prices – 2011

The price of both Brent and WTI oil in 2011 will remain at the mercy of the US dollar. A weaker US dollar typically lifts oil prices as it lowers the value of dollars paid to producers, while making it less expensive to buy in other currencies.