WTI oil trading near $111, weak US dollar supports prices

WTI oil futures open Tuesday’s trading session back near $111 a barrel, down over a dollar, however oil prices may well see some support from a weak US dollar, which continues to push commodity prices near record highs.

Latest WTI Oil Price

US Light crude oil futures for June 2011 delivery was trading at $111.32 a barrel, 06.00 GMT this morning in electronic trading on the NYMEX.

Commodity Price Rally

Take a look at commodity prices and it’s easy to see why crude oil is hanging at two year highs. Silver and gold prices continue to surge, mainly on US dollar weakness.

“The weak US dollar is really continuing to be the primary driver. You’re seeing a run into gold and silver as a hedge against all the major currencies, and into oil as well, and all the other commodities.” said Kyle Cooper, director of research for IAF Advisors in Houston.

The ICE US Dollar Index, which tracks the US dollar against six major world currencies was trading at 74.268, just slightly up on last week’s lows, however the dollar is expected to weaken further, which will be bullish for oil prices in the short term at least.

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WTI oil trading near $111, weak US dollar supports prices