{"id":12271,"date":"2010-10-07T09:03:00","date_gmt":"2010-10-07T07:03:00","guid":{"rendered":"http:\/\/bontrade.org\/blog49\/12271\/brent-oil-price-nears-86-us-dollar-index-will-trade-lower\/"},"modified":"2010-10-07T09:03:00","modified_gmt":"2010-10-07T07:03:00","slug":"brent-oil-price-nears-86-us-dollar-index-will-trade-lower","status":"publish","type":"post","link":"https:\/\/bontrade.org\/blog49\/12271\/brent-oil-price-nears-86-us-dollar-index-will-trade-lower\/","title":{"rendered":"Brent oil price nears $86, US Dollar Index will trade lower"},"content":{"rendered":"

Brent oil prices open Thursday’s trading session near the $86 a barrel mark and it’s clear that the recent slide in the US Dollar Index has many investors betting that the dollar will trade lower in the short term at least.<\/p>\n

In London, Brent crude oil futures for November 2010 delivery was trading at $85.64 a barrel, 07.45 GMT on the ICE Futures Exchange.<\/p>\n

US Dollar Index is Faltering<\/strong><\/p>\n

Meanwhile, the US Dollar Index has again begun falling, touching 77.73 yesterday and should continue to loose ground.<\/p>\n

Brent oil prices have surged above $80 in the last week amid a plunge in the US dollar as investors anticipate that US interest rates could head even lower.<\/p>\n

The US Federal Reserve may soon move to buy Treasury bonds and take other measures to lower long term interest rates in an attempt to boost a faltering US economy. These latest measures will have a negative effect on the US dollar and will boost oil prices and other commodities.<\/p>\n

US Dollar Weakness is Boosting Oil Prices<\/strong><\/p>\n

Recent gains in oil prices can mostly be placed on weakness in the dollar against the euro as a weaker US dollar means that commodities including oil are cheaper for buyers using other currencies.<\/p>\n

Brent Oil Prices Back at $100?<\/strong><\/p>\n

Brent oil futures 2010 trading high of $87 is fast approaching as investors start to guess that oil prices could end the year much higher, maybe back near the $100 mark which was last reached in Setpember 2008.<\/p>\n

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