Brent oil price hovers near $100 as stronger dollar holds back crude

Brent oil futures open Wednesday’s trading session hovering just over $100 a barrel as oil prices remain in a state of limbo, failing to find any clear direction whilst a stronger US dollar is helping to keep a lid on higher crude.

Latest Brent Oil Price

In London, ICE Brent crude oil futures for August 2013 delivery was trading at $100.76 a barrel, 07:49 GMT this morning on the ICE Futures Exchange. The contract closed off yesterday’s session at $101.20.

Stronger US Dollar

The US dollar has bounced higher in the last few days following the US Fed’s announcement that it may well bring an end to it’s QE program in 2014. As of this morning, the US Dollar Index, which tracks the US dollar against 6 major world currencies was at 82.870, nearly 2 percent higher than lows of early last week.

“There’s broad based dollar strength. People are rotating out of assets that they overreached for as the grab for yield unwinds. The dollar will be the beneficiary of people looking to unwind liquidity.” according to Brian Kim, a currency strategist at RBS Securities, Stamford, Connecticut.

Short term direction for both European Brent and US WTI crude oil prices will once again take some direction off the back of weekly data in the US from the EIA’s and API’s reports which monitor crude oil stockpiles for the United States, due out later today.

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Brent oil price hovers near $100 as stronger dollar holds back crude