February 2010
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Page added on February 16, 2010

Brent oil price trading over $75, eyes on US dollar

ICE Brent oil prices have jumped higher in today’s busy trading session, up $3.20 at $75.71 on the ICE futures exchange as the US dollar weakened and the global stock markets climbed on upbeat economic news.

US stocks rose as rising commodity prices boosted energy stocks and European sovereign debt concerns eased. A weaker US dollar and renewed tension over Iran’s nuclear ambitions boosted crude oil futures prices and gold futures also climbed. The US Dollar Index, which tracks the greenback against a basket of six currencies, was down 0.9%. Meanwhile, US Treasurys were mixed, with the two-year note up 1/32 to yield 0.822% and the 10-year note off 3/32 to yield 3.704%.

This comes as the US government said Tuesday that foreign demand for US Treasury securities fell by the largest amount on record in December with China reducing its holdings by $34.2 billion. The Treasury Department reported that foreign holdings of U.S. Treasury securities fell by $53 billion in December, surpassing the previous record of a $44.5 billion drop in April 2009.

The big drop in China’s holdings meant that it lost the top spot in terms of foreign ownership of US Treasuries, dropping to second place behind Japan.