Brent oil price trades firm at $98, weak US dollar supports

28 January 2011 28 January 2011

BonTrade

Brent oil futures open Friday’s trading session back near $98 a barrel as a weaker US dollar helped push the Brent contract back near $100, as seen by movements on the ICE US Dollar Index.

Latest Brent Oil Price

In London, Brent crude oil futures for March 2011 delivery was trading at $97.94 a barrel, 08.00 GMT this morning on the ICE Futures Exchange.

Meanwhile, the ICE US Dollar Index, which tracks the US dollar against six major world currencies failed to gain much strength and is currently at 77.707 from 77.776.

Brent Oil and WTI Spread

Current price differences between Europe’s Brent and the US WTI oil contracts have reached a record, with Brent oil futures now trading around a $12 premium to US WTI.

“Speculative money flows appear to be gravitating away from the WTI market and toward Brent.” said Jim Ritterbusch, president of Ritterbusch & Associates.

Either way, oil prices are sure to remain bullish, it’s more of a question of whether Brent oil is overpriced, or, if WTI is undervalued.