LP:WTI oil futures trading at $92 as US dollar pushes higher
US WTI oil futures open Tuesday’s trading session at $92 a barrel as the US dollar pushes higher over doubts surrounding the latest EU bailout plan, capping recent gains in oil prices and other commodities.
Latest WTI Oil Price
US Light crude oil futures for December 2011 delivery was trading at $92.16. 06.55 GMT this morning in electronic trading on the NYMEX. The US oil contract closed off yesterday’s trading session at $92.54, or one percent lower.
US Dollar v Euro
The US dollar rose yesterday after the euro suffered as investors continue to question the effectiveness of last week’s EU bailout deal.
“It looks like the euro is getting hit pretty hard today, and I suspect that’s going to leak into the oil market. We continue to see a lack of details and question the feasibility of the EU debt deal.” said Peter Donovan, vice president and oil trader at Vantage Trading.
A stronger US dollar tends to discourage investment in dollar priced commodities such as crude oil as it makes the commodity more expensive to holders of other currencies.
