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Oil prices trading steady as US dollar makes gains
Published on March 2, 2010 by oilprices · No CommentsOil prices are trading steady on Tuesday in Asia as the US dollar made some gains amid European sovereign risk worries and the latest forecasts for rising US crude oil inventories capped prices.
US Light crude oil futures for April delivery rose 9 cents to $78.79 a barrel earlier this morning, while London ICE Brent climbed 11 cents to $77.00 on the ICE Futures Exchange. The front month contract for US Light crude oil futures touched $80.62 yesterday, its highest since January 13th 2010.
But oil prices retreated after the US dollar gained 0.65 per cent against a basket of currencies (the Dollar Index). On Tuesday the US dollar gained a further 0.37 per cent as concern swirled about sovereign risk issues in Europe. The Euro fell against the US dollar on Monday as uncertainty remained over a bailout package for debt strapped Greece, while Wall Street extended gains after a spurt of takeover news.
“Rising equities are being offset by a stronger dollar and the market lacks some direction right now,” said Gene McGillian, analyst at Tradition Energy in Stamford, Connecticut.