Stock markets rally, WTI oil futures trade at $74 mark

European and US stock markets rallied on Wednesday, up over 3 percent as WTI oil futures hold firm at the $74 a barrel mark, awaiting further direction from the US dollar.

US Light crude oil futures for October 2010 delivery was trading at $74.01, 07.30 GMT on the NYMEX after closing yesterday’s trading session higher.

ICE Dollar Index Dips Lower

The ICE Dollar Index, which tracks the US dollar against a basket of major currencies was trading down 0.90 percent at 82.453.

“A rebound in risk appetite lured wary investors out of the relative safety of US dollar denominated assets. Surging stocks and generally firmer commodities signaled an improving mood throughout global markets.” said Omer Esiner, chief market analyst at Commonwealth Foreign Exchange in Washington.

The US dollar declined against the euro and other major currencies yesterday after a measure of US manufacturing activity unexpectedly improved last month, adding to evidence of pockets of strength in the US economy.

Any minor good news coming out from the US is having a positive effect on the Dow Jones and in turn, WTI oil prices are following the trend higher.

Tags:  dollar, ice dollar index, markets, oil, oil futures, oil prices, price, stock, US dollar, WTI, wti oil price