LP:US Light oil price trading near $108 as Dollar Index falls against major currencies
US Light oil prices open Tuesday’s trading session hovering near $108 a barrel as tensions in the Middle East continue to boost oil futures while a fall in the value of the US dollar against major currencies on Monday saw the US oil contract close 0.7 percent higher.
Latest WTI Oil Price
US Light crude oil futures for May 2012 delivery was trading at $107.78 a barrel, 07.42 GMT this morning in electronic trading on the NYMEX.
The ICE US Dollar Index fell to a one week low yesterday as traders sold the US currency, triggering automatic sell orders for the pair that further weighed on the US dollar.
The ICE US Dollar Index, which tracks the US dollar against six major world currencies was trading at 79.830 – 07.45 GMT today, from the session open of 79.712.
“Given the dollar’s sharp run up last week, investors are paring back some of those positions. The euro has been able to sustain that $1.30 level and it looks now like there’s more upside momentum after the break of $1.32 on the upside. said Mark McCormick, a currency strategist at Brown Brothers Harriman & Co, New York.
A weaker US dollar adds support to commodities that are priced in the currency, including oil futures.
