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WTI oil trading above $71, expect higher oil prices soon
Published on June 8, 2010 by oilprices · 1 CommentWTI oil prices are trading above $71 on Tuesday in Asia as a weaker US dollar and the possibility of hurricanes in the Gulf of Mexico may push oil prices higher in the near future.
US Light crude oil futures for July 2010 delivery was trading up to $71.75 a barrel at midday Singapore time in electronic trading on the NYMEX.
“As soon as the dollar drops, equity markets recover and the hurricanes hit the Gulf of Mexico, we could see a perfect storm for higher crude oil prices,” energy consultancy the Schork Group said in a report.
The euro edged up but was still near four year lows against the US dollar on Tuesday as a short squeeze showed signs of waning and funds were expected to resume selling on persistent worries about Europe’s financial system.
The market remains sensitive to negative news on Europe and it will be difficult for the Euro to move higher around the $1.20 level.
The US hurricane season began 1st June 2010 and ends 30th November 2010, earlier this month experts predicted it would bring 14 to 23 tropical storms, including 8 to 14 hurricanes which includes hurricanes in the Gulf of Mexico, the home to most of the US oil platforms.
Tags: Asia, dollar, future, gulf, hurricanes, Mexico, oil prices, oil trading, trading, WTI
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This little article clearly shows that oil traders in general are at the same level as politicians in the minds of the common man and believe it or not, that sentiment is growing.
Clearly, a catastrophe such as a major hurricane which would cost possible loss of life and definite economic hardships looked at as a good thing by those who care only about their own financial standings.
Not only do we the people need to clean house in the government…we also need to stop the choking of our and the worlds economies by oil traders / speculators.