Brent oil price hovers under $77 on higher dollar, markets

Brent oil prices are hovering under the $77 mark in trading on Tuesday as a higher US dollar and optimism in global markets pushed stocks higher. Brent crude oil futures is currently priced at $76.90 on the ICE Futures Exchange.

“If we come in Tuesday and see a further equities rally and maybe a little weakness in the US dollar, the market could be right back up at $80,” said Gene McGillian, an analyst with Tradition Energy in Stamford, but added that strong signs of higher oil demand will be needed to break the collar around crude oil prices.

“There’s a fair amount of uncertainty about directions of various currencies so I think how that will impact on commodity prices is something that the market is looking at.” said Jason Feer, analyst with energy consultancy Argus Media.

Also, oil traders said the market will focus on upcoming US oil inventory data for near term direction. The API’s data for the week ended February 26th are due out on Tuesday afternoon, while the more widely tracked figures from the government’s EIA are scheduled for release at 10:30 a.m. EST on Wednesday.

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