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WTI oil price trading above $78, eyes on Dollar Index
Published on June 22, 2010 by oilprices · No CommentsWTI oil prices are trading above $78 a barrel on Tuesday as the Dollar Index moved higher against most other currencies.
US Light crude oil futures were at $78.61 a barrel midday Tuesday Singapore time on the NYMEX.
The Dollar Index, which tracks the US currency against those of six major trading partners, rose 0.3 percent to 85.991 at 5pm in New York. The dollar appreciated 0.6 percent to $1.2312 per Euro, from $1.2388 on June 18th.
“The rise today is based on the revaluation of the yuan,” said Adam Sieminski, chief energy economist at Deutsche Bank AG in Washington. “A prospect of a stronger Yuan and a weaker US dollar is giving most markets a boost.”
“The impact of cheaper oil for Chinese consumers and the stimulus for imports is what is pushing prices up,” said Christopher Bellew, senior broker at Bache Commodities Ltd. in London.
Oil volume in electronic trading on the NYMEX was 473,560 contracts as of 3:17 p.m. in New York. Volume totaled 459,249 contracts June 18th 2010, 41 percent below the average of the past three months, with open interest at 1.28 million contracts, the lowest level since March 1st 2010.
Tags: currencies, dollar, Index, oil, oil prices, prices, trading, WTI