Brent oil futures open today’s trading session firm around $111 a barrel as a weaker US dollar fuels commodity and oil prices, as seen by a falling ICE US Dollar Index. Latest Brent Oil Price In London, Brent crude oil futures for October 2011 delivery was trading at $111.31 a barrel, 07.35 GMT this morning on the ICE Futures Exchange. ICE US Dollar Index Meanwhile, the ICE US Dollar Index, which tracks the US dollar against six major world currencies weakend to 73.610 after closing at 73.869 late on Friday. Traders are speculating that the US Fed may offer more stimulus next month in the face of an uncertain growth outlook in America. “If the economy were to fall into recession, we believe the Fed would initiate another round of quantitative easing,” Michael Carey, chief economist for North America for Credit Agricole, said in a note to clients. “Until we can get to a point where the US dollar can demonstrate some independent strength, like the economic data justifies the Fed to provide some interest rate support, we don’t think the dollar can shine.” said Robert Sinche, the global head of foreign exchange strategy at RBS. A weaker US dollar tends to push oil prices higher as they become cheaper for buyers using other currencies.

Source