Brent oil price firm over $88 amid stronger US dollar

Brent oil prices open Tuesday’s trading session firm over the $88 mark as a stronger US dollar fails to cap Brent’s recent gains.

Latest Brent Oil Price

In London, Brent crude oil futures for December 2010 delivery was trading at $88.32 a barrel, 07.15 GMT this morning on the ICE Futures Exchange, while the ICE Dollar Index, a measure of US dollar performance against a basket of six major world currencies, edged up 0.2 percent to 77.18.

Oil Prices, Commodities and Fundamentals

Recent gains in oil futures seem to have no relation to normal fundamentals, with many analysts expecting that traders will keep betting on commodities including crude oil, citing easing policies by major global economies including the US.

“The worst of the fundamentals seem to be behind us and, while we would not say that oil is fundamentally bullish here, it is technically bullish and it is being bought by investors who are out there buying all kinds of assets they do not really have any desire to own.” said Peter Beutel, of oil trading advisory firm Cameron Hanover.

“Speculators are back in the market. They don’t seem to fear a sudden collapse in oil prices. I don’t think this market is nice, but it’s not strange either because the US dollar will remain cheap.” said Rikio Ishikura, a trader with Newedge Japan.

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