Brent oil price opens the week slightly higher, near $98 as dollar looses out

Brent oil prices open the week slightly higher near $98 a barrel as the US dollar looses some strength against the euro following yesterday’s elections in Greece which helped the euro currency jump this morning, but the nervous market remains volatile to corrections.

Latest Brent Oil Price

In London, Brent crude oil futures for August 2012 delivery was trading at $98.71 a barrel, 07.23 GMT today on the ICE Futures Exchange. Meanwhile, the ICE US Dollar Index opened flat around 81.3950. A weaker US dollar is bullish for crude oil prices as they are priced in the currency unit.

Greece Elections and Austerity

Yesterday’s elections in Greece have had a positive effect with Asian stock markets and commodity prices registering gains, however Greece’s New Democracy party face tough challenges ahead.

Although the New Democracy party won the largest share of the vote, it will have to rely on its discredited socialist rivals Pasok to form a coalition government to accept the bailout, keeping Greece in the single currency.

Last night, Syriza insisted it would not join any kind of national unity government and promised to provide strong opposition to any pro bailout coalition.

With a continued tense situation that clouds Europe at the moment, it is hard to see Brent oil prices gaining much in the coming days.

See the original post:
Brent oil price opens the week slightly higher, near $98 as dollar looses out