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WTI oil prices firm at $76 as US dollar slides lower
Published on July 19, 2010 by oilprices · No CommentsWTI oil prices are trading firm around $76 as the US dollar slides lower and markets reversed earlier gains as the US Home Builder confidence index dropped to the lowest level since April 2009.
US Light crude oil futures for September 2010 delivery was at $76.39 a barrel at 17.00 GMT on the NYMEX.
“September crude oil is where all the volume is today. People want to buy into crude, they want to be long.” said Carl Larry, president of Oil Outlooks and Opinions in Houston.
“Investors are following broader signals to get a handle on the future demand outlook,” said Chris Barber, a senior analyst at Energy Security Analysis in Wakefield, Massachusetts.
The ICE Dollar index, which tracks the US dollar against a trade weighted basket of currencies, was at 82.452 from 82.535.
Concerns over the US economy have dominated currency markets recently with a string of disappointing US data sent the US dollar to a seven month low against the yen.
A weaker US dollar tends to send oil prices higher, however with many other factors at play this week, it’s a little difficult to predict the short term future direction for oil prices.
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