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Brent oil price trading firm over $83 amid stronger dollar
Published on October 5, 2010 by oilprices · No CommentsBrent oil prices open Tuesday’s trading session firm over $83 a barrel although the US dollar found some strength yesterday, which had little impact on oil prices.
In London, Brent crude oil futures for November 2010 delivery was trading at $83.47, 07.40 GMT on the ICE Futures Exchange.
A stronger US dollar means oil producers are going to get paid more per barrel when the price is converted back into their own currencies. It’s a fairly straight trade off that takes the steam out of oil prices, when the dollar goes up, oil prices usually head lower.
A weaker dollar has provided oil prices with momentum in recent weeks, and brent oil futures hit $84 in trading yesterday.
ICE Dollar Index Edges Higher
The oversold ICE Dollar Index found support at the 78 handle and rose to 78.43. Longer term, the Dollar Index has completed a large head and shoulders patter and is looking like it’s heading for a drop further back down to the 70′s level.
Tags: brent, brent oil price, dollar, oil, oil price, trading