Brent oil price dips to $77 as traders close long positions

Brent oil prices on the ICE Futures Exchange fell over $3 a barrel in trading on Friday, as a stronger US dollar was compounded by oil traders closing long positions ahead of the contract’s expiry later.

Brent crude oil futures is currently trading at $77.18 a barrel, around $3 down on the day.

June Brent is taking the brunt of the losses Friday as the euro slipped to a new 14 month low against the US dollar amid ongoing concerns over Southern Europe’s sovereign-debt woes.

With the contract expiring later Friday, traders are closing their long positions, London based traders said. The June/July Brent timespread has widened to around $1.80 a barrel Friday, up around $0.50 a barrel on Thursday.

There were just over 90,000 open interest positions left on the June Brent contract Wednesday, the last day the ICE Exchange released volume before the expiry.

“I am amazed people would have June Brent on today,” a London-based crude oil trader said.

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