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WTI oil price heading to $72, Dollar Index hits month high
Published on August 24, 2010 by oilprices · No CommentsWTI oil prices are heading back down to the $72 mark on Tuesday in light trading as the ICE Dollar Index hits a one month high and continues to gain on safe haven flows.
US Light crude oil futures for October 2010 delivery was trading at $72.40, 07.45 GMT on the NYMEX, trading down around eleven percent over recent highs.
The ICE Dollar Index rose against a basket of major currencies to 83.143, up from 82.437.
Crude Oil Futures at Six Week Lows
Crude oil futures continue to fall on Tuesday morning for the fifth consecutive session, hitting six week lows and down 7.5 percent this month as oil prices remain under pressure from worries of an economic slowdown.
“There seems to be a real sense we have to move lower from here still, we’re just not seeing the turnaround of the economy that we were hoping.” said John Kilduff of Again Capital.
European Markets Set to Open Lower
Futures on the Euro Stoxx 50 Index dropped 0.6 percent to 2,638 at 07.10 GMT and the UK’s FTSE 100 Index will open 24 points lower this morning. The UK faces a “real risk” of a second recession, Bank of England policy maker Martin Weale had commented yesterday.
WTI oil prices have so far defied a weakening global enconomy to remain near the $75 a barrel mark until last week and oil futures could soon test the $70 price range.
Tags: dollar index, ICE, oil, oil prices, prices, WTI, wti oil price