LP:WTI oil futures trading at three month high near $94 a barrel
WTI oil futures open Friday’s trading session pushing near $94 a barrel as the price of US oil nears back to a three month high, mainly on higher stock markets and a weaker US dollar on the currency market.
Latest WTI Oil Price
US Light crude oil futures for December 2011 delivery was trading at $93.26 a barrel, 07.30 GMT this morning in electronic trading on the NYMEX after closing yesterday’s session at $93.79, or 3.4 percent higher.
US GDP Data and the Dollar
Improved US GDP data also provided a much needed boost for oil prices, with the economy growing 2.5 percent, as expected, in the third quarter, according to an initial reading on US GDP data. That compares with growth of 1.3 percent in the second quarter of 2011.
“Certainly, the news out of Europe is short term bullish for oil prices. Technically, the prompt WTI contract looks like it could move up to $100 fairly easily. The dollar, which is under a lot of pressure today, is also supportive of crude.” said Tradition Energy’s senior market research director Addison Armstrong.
Meanwhile, the US dollar fell against most major currencies, as seen by downward movements in the ICE US Dollar Index. The Dollar Index, which tracks the US dollar against six major world currencies was at 75.135 from yesterday’s close of 75.011.
“The Dollar Index daily chart has reached the 200-day moving average at 75.78. The down trend at 76.50 dominates. While capped here, we look for losses to extend to 74.88.” said Karen Jones, head of fixed income, commodity and currency technical analysis, London.
A weaker US dollar tends to make oil prices rise as crude becomes cheaper for buyers using other currencies.
