Brent oil price trading near $80 mark on weaker dollar

Brent oil price is closing in on the $80 mark in early trading in Asia as a weaker US dollar and bullish momentum from recent signs of economic recovery pushed Brent crude oil higher. Brent crude oil futures for April delivery rose as much as 75 cents, or 1 percent, to $78.94 on the London based ICE Futures Exchange, and was at $78.63 at 1:06 p.m (Singapore time).

The US dollar slipped on Monday as investors reassessed the chances of an earlier than expected interest rate hike by the Federal Reserve, while the euro was lifted by speculation of a quick bailout for Greece.

This week, all eyes will be on Fed chief Ben Bernanke’s testimony in Congress on Wednesday and Thursday. Investors will be looking for clues on rates after the Fed surprised many by raising the discount rate last week.

“The US dollar is a little bit softer in early trading” while last week’s economic data has given the oil market a “bullish lean,” said David Moore, commodities strategist at Commonwealth Bank of Australia.

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