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WTI oil price hangs at $82, waits for US dollar direction
Published on August 5, 2010 by oilprices · 1 CommentWTI oil prices opening trading lower around the $82 mark as the US dollar posted its first positive day in over a week, but hold on, the latest US data doesn’t look too impressive.
US Light crude oil futures for September 2010 delivery were trading at $82.22, 08.00 GMT on the NYMEX.
“All our eyes are focused on the non farm report. That could turn the ship around.” said Phillip Streible at futures broker Lind-Waldock in Chicago. However, the short term outlook for the US dollar could be bleak if US data continues to point to a slowing US economy.
The US dollar faces a rough time pulling itself off its current four month lows against a basket of its competitors (the ICE Dollar Index). The ICE Dollar Index, a trade weighted basket of six currencies, fell to its lowest level since April 15th on Monday, at 80.469, but yesterday gained to 80.978.
If the index dips below 79.500, the pace of its decline could quicken, which in turn would boost oil prices and other commodities including gold.
Tags: data, dollar, oil, oil price, price, trading, US dollar, wti oil price
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Still don’t see it eh folks?
Oil being traded as a commodity is driving the price up when it shouldn’t be when one looks at demand.
Does it really make sense that you’re all going to line your pockets and protect those pension plans once you contribute to the second wave of the recession?
I have a feeling that like those in Congress who will pay for their abhorrent behavior and non behavior both before and during this crisis with their jobs, oil speculation will eventually go the same route.
The common man will only take so much abuse before they eventually get tired of it and wake up and then react.
The simple fact is that by oil being allowed to be traded as a commodity, you bite the very hand that feeds you.