LP:WTI oil trading at $97, US dollar strengthens on Euro debt situation
US WTI oil futures open Tuesday’s trading session around $97 a barrel as oil prices fell lower on Monday off the back of a stronger US dollar, which rose on continued gloom surrounding Euro debts whilst global stock markets slid lower still.
Latest WTI Oil Price
US Light crude oil futures for January 2011 delivery was trading at $97.36 a barrel, 07.20 GMT this morning in electronic trading on the NYMEX.
The US oil contract settled down 75 cents, or 0.8 percent, to $96.92 a barrel at close on Monday.
US Dollar Strength
The ICE Dollar Index, which tracks the US dollar against six major world currencies, was recently up to 78.410, gaining against the euro as worries persisted over Europe’s debt crisis.
A stronger dollar typically weighs on oil prices by making the dollar denominated commodities more expensive for buyers using other currencies.
“There’s a big repatriation into the US dollar. The big elephant in the room continues to be Europe.” said Phil Flynn, energy analyst at brokerage PFG Best in Chicago.
Stock markets around the world fell sharply on Monday, as a warning on France by credit rating agency Moody’s added to investors worries about the euro zone debt crisis.
“This crisis is hitting the core of the euro zone. We should have no illusions about this.” Olli Rehn, the European commissioner for economic and monetary affairs, said Monday.
