Brent oil futures open Monday’s trading session lower, near $113 a barrel as once again oil prices are being lead by currency markets, with the euro weakening on fresh worries that Greece may restructure its sovereign debt.
Latest Brent Oil Price
In London, Brent crude oil futures for June 2011 delivery was trading at $113.02 a barrel, 08.50 GMT this morning on the ICE Futures Exchange. The June 2011 Brent oil contract expires today.
The Euro Coming Down
“The euro is coming down day by day and that is impacting oil prices. After the big rebound, oil prices are loosing direction. We need to see what impact the euro will have on the forex market, and what it will mean for commodity prices. said Ken Hasegawa, a commodity derivatives manager at Japan’s Newedge brokerage.
“We market participants are always waiting for any announcement on interest rates in the US and Europe to give us an idea on the future direction of markets. Overall, interest rates are likely to go up faster in Europe than in the US.” Hasegawa added.
Stronger US Dollar
“In Asian trading, commodity prices are largely lower on account of a stronger US dollar. The greenback has soared against the euro on worries that European finance ministers may fail to prop up Greece as it attempts to restructure its debt.” said energy analysts at MF Global.
Original post:
Brent oil trading near $113, following weakness in the euro
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