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Oil prices trading higher, maybe closing in on $80 mark
Published on February 17, 2010 by oilprices · No CommentsOil prices are trading slightly higher in Asia this morning a could be closing back in on the $80 mark as a weaker US dollar and strengthening global stock markets as fears that Greece’s debt crisis would spread eased. In today’s session, US Light crude oil futures rose 34 cents to $77.35 on the NYMEX, while in London, Brent crude oil futures are up 22 cents to $75.90 on the ICE Futures Exchange.
The euro extended a rebound in Asia, edging up to almost $1.3770. Oil prices also received a boost following a rally in US stock markets last night after the New York Federal Reserve Bank said manufacturing activity in the New York region expanded in February at a faster pace than expected.
What’s driving oil prices higher:
Oil prices are being lifted by a weaker US dollar, which fell against the euro, pound and yen. The euro gained ground on restored confidence as Europe urged Greece to take measures to tackle its debt crisis and finance ministers met in Brussels to discuss the problem. Crude oil, like other commodities, is priced in dollars, and a weaker greenback lifts prices.
“The sentiment just seemed to change drastically over the weekend,” said James Cordier, president of Liberty Trading Group. “Risk came back to the table with the stock market up sharply, and crude traded in the direction most easily traveled.”
Iran tensions and the relation to oil prices:
Crude oil prices are being supported by concerns about Iran. “There’s been an awful lot of talk about Iran recently,” said Cameron Hanover analyst Peter Beutel. “That’s certainly been a big factor in the way people are starting to think about this market.”