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Light oil price trading back over $80, eyes on US dollar
Published on February 22, 2010 by oilprices · No CommentsUS Light oil futures rose to a 6 week high above $80 a barrel in trading on Monday, as speculation over a quick bailout for debt laden Greece helped pushed the US dollar lower.
US Light crude oil futures for March delivery rose 57 cents to $80.38 a barrel after having struck $80.47 on the NYMEX.
Concerns about an extended refinery strike in France and escalating tensions over Iran’s nuclear program also lent support to oil prices. The US dollar index fell 0.29 per cent against a basket of currencies today, as investors reassessed 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.
Low US interest rates and massive US government stimulus spending could also help weaken the US dollar, which would further support oil prices. A weaker dollar makes dollar based commodities such as crude oil cheaper for foreign investors to buy.
Tags: dollar, futures, Greece, light oil price, oil price, trading, US