WTI oil futures open Monday’s trading session back under $87 a barrel as continued EU debt fears surrounding Greece boost the US dollar against the euro, another signal that markets are bracing for a Greek debt default.<\/p>\n
Latest WTI oil price<\/strong><\/p>\n US Light crude oil futures for October 2011 delivery was trading at $86.64 a barrel, 06.30 GMT this morning in electronic trading on the NYMEX. The October WTI futures contract expires later today.<\/p>\n EU Debt Fears Boost the US Dollar<\/strong><\/p>\n The euro has weakened this month amid growing fears that a possible debt default in Greece could trigger similar moves in Portugal, Ireland, Italy and Spain as well as a banking crisis.<\/p>\n The euro fell to $1.3666 on Monday from $1.3794 on late Friday.<\/p>\n Meanwhile, the ICE US Dollar Index, which tracks the US dollar against six major world currencies rocketed north to 77.690. A stronger US dollar makes commodities such as oil futures more expensive for buyers using other currencies.<\/p>\n “The euro will be proceeding through a renewed weakening phase that will be placing additional pressures on the oil market.” energy consultant Ritterbusch and Associates said in a report.<\/p>\n Market sentiment improved late last week when major central banks, inluding the US Fed and the ECB threw a lifeline to European banks heavily exposed to Greece, offering them unlimited three month US dollar liquidity.<\/p>\n But that glow is off as weekend meetings of European finance ministers in Wroclaw, Poland, only served to underscore deep divisions on the EU debt crisis.<\/p>\n<\/p>\n