Stronger US dollar pushes oil prices lower

Light crude oil prices traded lower Monday as the US dollar strengthened after gaining early on a weaker US dollar, showing that currency strength and other economic considerations, rather than fundamentals, continues to drive oil price levels, causing some analysts to worry that continuing price increases could hurt economic recovery.

December contracts for WTI Light crude oil futures were down $1.63 to $78.87 per barrel at about 20 minutes before the close of floor trade on the NYMEX, while at last report Brent crude for December delivery was down $1.24 to $77.68 per barrel on the ICE Futures Europe exchange in London.

Even as oil prices rose earlier, they were held to minor gains by news that the Nigerian government has reached an cease fire agreement with rebels in the country’s oil rich Niger Delta region.

Tags:  light oil prices, US dollar