WTI oil prices open Tuesday’s trading session around $96 a barrel as the US dollar holds a firm line whilst continued debt tensions surrounding Euro countries continue to affect currency markets and commodity prices. Latest WTI Oil Price US Light crude oil futures for August 2011 delivery was trading at $96.04 a barrel, 06.50 GMT this morning in electronic trading on the NYMEX. Meanwhile, the ICE US Dollar Index, which tracks the US dollar against six major world currencies was at 75.765 in early trading, from yesterday’s closing price of 75.52. Currencies Running the Show “We think the general malaise in most markets will keep the upside in energy somewhat in check and likely pressure prices somewhat lower from here. Specifically, the potential for more negative surprises out of Europe will only increase the odds of such a currency induced retracement.” MF Global said in a research note. Double Dip Recession? “The global economy simply faces too many serious headwinds for us to believe that growth rates will accelerate in second half of 2011 and the start of 2012. It will be sluggish at best and, at worst, we could see the start of a double dip recession.” said energy analyst Richard Soultanian of NUS Consulting. Euro Debt Fears Continue The euro was 0.6 percent from its lowest level in a week against the US dollar on concern Euro leaders will be unable to agree on steps to contain Europe’s debt crisis at a summit this week. “These sovereign issues continue to move from one stumbling block to the next. The euro is probably going to head back down and test $1.40 again.” said Richard Grace, chief currency strategist at the Commonwealth Bank of Australia. A weakening euro will have many investors fleeing back into other currencies with the US dollar a main target, capping oil prices as crude is priced in dollars, making it more expensive for buyers using other currencies.

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