|
Oil prices trading higher amid stronger US Dollar, Europe
Published on February 8, 2010 by oilprices · No CommentsCrude oil prices are trading steady in Asia on Monday as the US dollar edged higher versus other major currencies including the European Euro, and continue’s to see support in the wake of a decline in US nonfarm payroll employment and ongoing global sovereign debt concerns.
Oil prices rose after hitting a two month low last week, boosted by tensions over Iran’s nuclear program and persistently cold weather in the US. Benchmark Light crude oil futures for March delivery was up 56 cents at $71.75 a barrel at midday Singapore time in electronic trading on the NYMEX, while in London, Brent crude oil futures are up 63 cents at $70.22 on the ICE futures exchange.
“The escalating debt crisis in Europe, particularly that latest news on Portugal and Spain following down the path of Greece to possible national bankruptcy, has spooked global markets, including obviously Asian equity and global currency markets,” said Martin Hennecke, an associate director at Tyche Group Ltd. in Hong Kong.
“While currency movements in the short term are hard to predict, the medium- to long term prospects of the major Western currencies of the euro, US dollar, and GBP are all very dire, since the respective countries behind these currencies have basically lost control of their budget deficits to the point where printing money … will be their only option to escape the debt trap and national bankruptcy,” he said.