WTI oil trading near $91, on weak US Dollar, Egypt

2 February 2011 2 February 2011

BonTrade

WTI oil futures open Wednesday’s trading session near $91 a barrel, mainly on a weaker US dollar, as seen by downward movements on the ICE US Dollar Index and continuing unrest in Egypt.

Latest WTI Oil Price

US Light crude oil futures for March 2011 delivery were trading at $90.91, 08.40 GMT this morning on the NMYEX.

Meanwhile, the ICE US Dollar Index, which tracks the US dollar against six major world currencies was lower, near 77.101. A weaker US dollar tends to support commodity prices, including oil futures.

Oil traders and investors will be looking at the latest weekly oil inventory data, due out today and to the US non-farm employment data due on Friday to get a better picture of short term oil price direction. If the data is positive, the US Dollar Index is expected to rebound, and that will weigh on oil prices.

US President Muscles in on Egypt

Meanwhile, the situation in Egypt has many investors back in buy mode for oil futures, due to possibilities of oil supply disruption from the Egyptian Suez Canal, one of the world’s most important oil passages to the west.

Yesterday, US President Barack Obama told the current Egyptian leader Hosni Mubarak that an “orderly transition of power must begin now”. Mr Obama spoke to Mr Mubarak for half an hour by telephone after America’s long term ally announced his plans to move aside later this year.