WTI oil price up over $73 as the US dollar looses out

US WTI Light oil prices are trading over the $73 range on Friday with the US dollar loosing ground as a new set of downbeat reports on the US economy had the dollar in retreat against most other major currencies.

In New York, WTI Light crude oil futures for August 2010 opened trading and climbed to $73.17 a barrel by 08.30 GMT on the NYMEX.

“We do expect the recovery to support prices ahead, once much of the doom and gloom mindset fades away, but a pervasive air of somewhat irrational nervousness still persists.” Barclays Capital said in a report.

It also appears the US currency is losing its status as a safe haven, with the so called risk trade being replaced to some degree by fundamentals.

A few weeks ago the US economy seemed to be in recovery, but this was not apparent today. The workforce declined by 130,000 in June, a slowdown in auto manufacturing, construction and a record low number of home sales indicate the economy may be slowing.

A weak US dollar tend to have an upward effect on oil prices.

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