Light oil price trading back near $80 on weaker US dollar

US Light oil prices rose in trading on Friday as the US dollar slipped against the euro, bolstering the appeal of commodities buying including crude oil and gold.

US Light crude oil futures for April delivery was up 16 cents to $79.06 a barrel in electronic trading on the NYMEX, while in London, Brent crude oil futres was higher at $76.89 on the ICE futures exchange.

Both NYMEX Light and ICE Brent oil prices have dropped nearly 2% this week. Oil prices sank over two percent on Thursday after a disappointing US employment report and as stocks tumbled.

Oil was boosted by a weaker US dollar today, which fell versus the euro amid lingering concerns about Greece’s debt crisis. Also, oil prices increased after the US Commerce Department said gross domestic product gained by the most in six years. Federal Reserve Chairman Ben Bernanke said this week that the US economy is in a “nascent” recovery. Britain emerged from a recession at a faster pace than previously estimated in the fourth quarter of 2009.

Meanwhile, JPMorgan Chase & Co. raised its 2010 forecast for crude oil traded in New York by 6.7 percent, partly because of reduced inventories in floating storage.

Tags:  commodities, crude, dollar, euro, light oil price, oil price, trading, US